Nevada Foreclosure Laws

Foreclosure Laws in Nevada

Foreclosures in Nevada are primarily carried out through non judicial proceedings; judicial foreclosures are only necessary in special circumstances. All in all, the foreclosure process in the state takes about four months to complete.

As long as the mortgage in question contains a Power of Sale clause, the lender may begin a foreclosure themselves by filing a Notice of Default with the county recorder, and mailing a copy of the notice to the homeowner in default. The borrower can stop the process and avoid foreclosures by paying off the default debt owed within 35 days of receiving the Notice of Default.

If payment of the default debt is not received within 3 months of the registration of the default, the lender can move to schedule a foreclosure sale of the property in question as a means of collecting the outstanding debt.

The lender must issue a Notice of Sale before carrying out a foreclosure. The Notice must be published in a local newspaper for three consecutive weeks leading up to the sale date, and must also be posted in at least three public places, including the location of the property itself. The homeowner is also entitled to receive a copy of the Notice of Sale.

On the day of the sale, a trustee conducts a public auction at which anyone, including the lender, may bid on the property. The winning bidder must provide the full amount of their bid in cash or by cashier's check to the trustee directly following the conclusion of the sale. If the sale must be postponed, it can be announced at the originally scheduled time of the sale. Once the sale is complete, the lender transfers ownership of the property to the winning bidder.

For non-judicial foreclosures, the original homeowner is not entitled to a period of redemption for Nevada foreclosure homes. While court foreclosures are uncommon in the state, they provide the homeowner with a one year period of redemption, during which they may seek foreclosures help or raise the full amount owed on their loan plus any additional costs to regain control and ownership of the property.