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Nevada Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed
of Trust, Mortgage
- Timeline: Typically 120 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Nevada, lenders may foreclose on deeds of trusts or
mortgages in default using either a judicial or non-judicial
foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing
a lawsuit to obtain a court order to foreclose, is used
when no power of sale is present in the mortgage or deed
of trust. Generally, after the court declares a foreclosure,
your home will be auctioned off to the highest bidder.
The borrower has one year (12 months) after the foreclosure
sale to redeem the property if the judicial foreclosure
process is used.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed of
trust. A "power of sale" clause is the clause
in a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the balance
on a loan in the event of the their default. In deeds
of trust or mortgages where a power of sale exists, the
power given to the lender to sell the property may be
executed by the lender or their representative, typically
referred to as the trustee. Regulations for this type
of foreclosure process are outlined below in the "Power
of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of
sale clause and specifies the time, place and terms of
sale, then the specified procedure must be followed. Otherwise,
the non-judicial power of sale foreclosure is carried
out as follows:
- A copy of the notice of default and election to sell
must be mailed certified, return receipt requested,
to the borrower, at their last known address, on the
date the notice is recorded in the county where the
property is located. Any additional postings and advertisements
must be done in the same manner as for an execution
sale in Nevada.
- Beginning on the day after the notice of default and
election was recorded with the county and mailed to
the borrower, the borrower has anywhere from fifteen
(15) to thirty five (35) days to cure the default by
paying the delinquent amount on the loan. The actual
amount of time given is dependent on the date of the
original deed of trust.
- The owner of the property may stop the foreclosure
proceedings by filing an "Intent to Cure"
with the Public Trustee's office at least fifteen (15)
days prior to the foreclosure sale and then paying the
necessary amount to bring the loan current by noon the
day before the foreclosure sale is scheduled.
- The foreclosure sale itself will be held at the place,
the time and on the date stated in the notice of default
and election and must be conducted in the same manner
as for an execution sale of real property.
Lenders have three (3) months after the sale to try and
obtain a deficiency judgment. Borrowers have no rights
of redemption.
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