Nevada Foreclosure Law
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Usually 120 days
- Right of Redemption1: Yes
- Deficiency Judgments2 Allowed: Yes
Lenders in the state of Nevada may foreclose on a deed of trust or a mortgage in default using a judicial or non-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.
In the event that a judicial foreclosure process is used in Nevada, the borrower has one (1) year after the foreclosure sale to redeem the property.
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 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 has a power of sale clause and it details the time, place and terms of sale, then the outlined procedure must be followed. However, if the power of sale clause does not clarify the time, place and terms of sale, then a foreclosure sale is conducted as follows:
- The borrower receives a copy of the notice of default and election to sell on the date the notice is recorded in the county where the property is located. Notice is generally sent by certified mail, return receipt requested, to the borrower’s last known address. The property is then advertised and posted pursuant to Nevada law as it pertains to an execution sale.
- The borrower has three (3) months from the date a notice of default and election to sell is recorded by the deed of trust's trustee to perform and cure the default. In order to cure the default, the borrower is often expected to pay the missed payments or other sums due to the lender, but not the accelerated loan balance. The property is sold at foreclosure if the borrower fails to redeem during this time.
- The time of sale must be specified in the foreclosure notice and the property sold in the manner required by law for the sale of real property on execution.
The lender may sue for a deficiency within three (3) months after the foreclosure sale or within six (6) months after the date of foreclosure. Borrowers have no rights of redemption.
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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