Nebraska Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Usually 180 days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: No
Lenders in the state of Nebraska may foreclose on a mortgage in default using a judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property. This type of process is generally used when no power of sale is present in the mortgage or deed of trust. A power of sale is a clause found in a deed of trust or mortgage that authorizes the sale or transfer of land as outlined by the terms of that clause.
Under Nebraska law, the court may order that the entire property be sold, or some part of it, based on a report by the sheriff as to what appears to be the most practical. The order of sale may be postponed for up to nine (9) months after the judgment if the borrower files a written request for a delay with the clerk of the court within twenty (20) days after the judgment is rendered. If there is no postponement ordered by the court, the sale of the mortgaged property will be given twenty (20) days after the judgment.
If the borrower pays the amount owed on the mortgage, as well as the interest and costs accrued, they can cure the default. Nevertheless, the court can move forward and enter a decree for the foreclosure and the sale. The court will only enforce the order if the borrower defaults on any future payments of any installment or a portion of one.
Public notice of the time and place of sale is provided by the sheriff when they post the notice on the courthouse door, in at least five additional public places throughout the county where the property is located, and publish the sale once a week for four (4) weeks in a newspaper in the county where the property is located.
The sheriff will report back to the court after the sale has occurred. The court will confirm the sale. Once confirmed by the court, the borrower no longer retains any rights of redemption.
A deficiency judgment is only allowed as a continuation of a foreclosure suit, but not while the foreclosure action is pending or remains incomplete.
1 A borrower’s right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
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