Judicial and nonjudicial procedures according to Nevada foreclosure laws
The Nevada foreclosure laws allows the use of both judicial and nonjudicial procedures for foreclosure of real estate. In Nevada the foreclosure proceedings are initiated with an official recording of a notice of default and an election to sell. These two documents are very crucial and should be mailed to the person who holds the title of the distressed property. After the borrower receives the notice of default and the election to sell he is sent another notice that specifies the entire balance due towards the outstanding loan on the foreclosure property. The borrower is granted a grace period of three months during which he can exercise his right to cure the loan by paying the outstanding amount. However, if the borrower fails to come up with the specified sum of money on the said date, the court grants permission to the lender to sell the distressed property and settle his outstanding dues.
It is imperative that the lender receive a receipt of the notice of default and election to sell notice, sent to the borrower. These notices should also be sent to any other owner of the distressed property on the very date that they are recorded. In instances where the borrower's address is not known, these notices should be sent to the property in foreclosure. The court allows for a ten day period for the notices to be reached to the concerned parties.
The lender or the trustee who is acting on his behalf must give a public notification of the time and place of the foreclosure sale at least three weeks before the sale is due to be held. The State of Nevada also lays down stipulations regarding the display of these notices in public places and in newspapers of the concerned area. The rules regarding the frequency of the publication of these notices should also be scrupulously adhered to. If this is not done it gives the borrower a ground to plead that the foreclosure sale is being null and void.
During the period that is awarded to the borrower to cure his loan, he is required to pay only the amount due before the foreclosure sale. The lender cannot make a plea for the accelerated loan amount or for the whole mortgage amount.
The foreclosure notice should clearly state the date, time and place of the foreclosure auction. The venue for the foreclosure auction can be the trustee's office even if it is in a different county. The manner of sale is decided by a court order when the permission for a foreclosure sale is awarded.
Nevada laws allow the lender to sue for a deficiency judgment within three months of the foreclosure sale. This condition arises when the foreclosure sale does not bring in enough money to settle the lender's outstanding dues. The court holds a hearing during which the market value of the foreclosed property is decided. Depending on the arguments presented during the hearing the court may or may not award a deficiency judgment.
