We practice law in these areas:
Nevada primarily operates as a title theory state where the property title remains in trust until payment has been made in full on the underlying loan. Nevada is primarily a non-judicial foreclosure State. Nevada law also permits mortgages to serve as liens upon real property and for judicial foreclosures to occur through the courts. In Nevada, lenders can proceed with a judicial foreclosure where the court has issued a final judgment of foreclosure. The property is then sold as a part of a publicly noticed sale. A complaint is filed in court along with a lis pendens in order to proceed.
Under a non-judicial foreclosure there is a notice requirement which the lender must serve which is called a NOTICE OF DEFAULT (NOD) where a borrower has 35 days to cure any default on the loan. This notice must be sent by certified mail and the defaulting borrower may cure the default prior to the sale date. It usually takes approximately one-hundred and twenty (120) days to effectuate an uncontested non-judicial foreclosure. A notice of sale is posted at least twenty (20) days before the trustee sale date in three public places and published in a local newspaper once a week for three weeks. The notice of sale is also mailed to the affected parties.
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 process may be delayed if the borrower files for bankruptcy or contests the action in court to seek postponement of the sale date. Nevada has no statutory right of redemption in a non-judicial foreclosure, however; there is a one (1) year right of redemption if a foreclosure is obtained by judicial means.
SPECIFIC NOTICE REQUIREMENTS FOR NON-JUDICIAL SALE ARE AS FOLLOWS:
NRS 107.087 Notice of default and sale in residential foreclosure: Requirements.
- In addition to the requirements of NRS 107.080, if the sale of property is a residential foreclosure, a copy of the notice of default and election to sell and the notice of sale must:
- Be posted in a conspicuous place on the property not later than 3 business days after the notice of default and election to sell or the notice of sale is recorded pursuant to NRS 107.080;
- Include, without limitation: The physical address of the property; and the contact information of the trustee or the person conducting the foreclosure who is authorized to provide information relating to the foreclosure status of the property.
- In addition to the requirements of NRS 107.084, the notices must not be defaced or removed until the transfer of title is recorded or the property becomes occupied after completion of the sale, whichever is earlier.
- A separate notice must be posted in a conspicuous place on the property and mailed, with a certificate of mailing issued by the United States Postal Service or another mail delivery service, to any tenant or subtenant, if any, other than the grantor or the grantor’s successor in interest, in actual occupation of the premises not later than 3 business days after the notice of the sale is given pursuant to subsection 4 of NRS 107.080. The separate notice must be in substantially the following form:
TENANTS RIGHTS UNDER A NON-JUDICIAL FORECLOSURE
NOTICE TO TENANTS OF THE PROPERTY
Foreclosure proceedings against this property have started, and a notice of sale of the property to the highest bidder has been issued.
You may either: (1) terminate your lease or rental agreement and move out; or (2) remain and possibly be subject to eviction proceedings under chapter 40 of the Nevada Revised Statutes. Any subtenants may also be subject to eviction proceedings.
Between now and the date of the sale, you may be evicted if you fail to pay rent or live up to your other obligations to the landlord.
Between now and the date of the sale, you may be evicted if you fail to pay rent or live up to your other obligations to the landlord. Under the Nevada Revised Statutes eviction proceedings may begin against you after you have been given a notice to quit.
If the property is sold and you pay rent by the week or another period of time that is shorter than 1 month, you should generally receive notice after not less than the number of days in that period of time.
If the property is sold and you pay rent by the month or any other period of time that is 1 month or longer, you should generally receive notice at least 60 days in advance.
If a lender proceeds with foreclosure, they have six (6) months from the date of the sale to file a deficiency judgment against the borrower for the loss they take due to the foreclosure sale.
Know your rights and how best to proceed. Contact the experienced attorneys at Hurtik Law to discuss your situation whether you be a tenant or a home owner facing foreclosure.