For homeowners facing foreclosure in Nevada, the following is a summary of the state’s foreclosure laws:
Foreclosures in Nevada can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in Nevada can also be nonjudicial but a court must confirm the sale.
Nevada law requires three notices:
- To start a nonjudicial foreclosure, the trustee records a notice of default and election to sell in the county recorder’s office and sends a copy to the homeowner within ten days. The notice has to include foreclosure mediation information. The notice also has to be posted on the property.
- Sixty days before the sale, the trustee must serve the homeowner with a danger notice, which states that foreclosure is imminent, as well as a copy of the original promissory note. The notice has to be personally served, as well as mailed, to the homeowner and left with an adult. If an adult is unavailable, the notice has to be posted visibly on the property, left with a resident as well as mailed.
- Three months after recording the notice of default or after sixty days if the property is abandoned, the trustee will record a notice of sale and mail a copy of the notice to the homeowner. The notice of sale also as to be posted on the property 15 days before the sale, in several public places for 20 days, and published in a local newspaper.
Nevada Foreclosure Protections
Nevada law provides protections in accordance with the federal Service Members Civil Relief Act.
For a mortgage loan issued after October 1, 2003, that is subject to the Home Ownership and Equity Protection Act of 1994 (HOEPA), Nevada law requires the bank to serve the homeowner a notice at least 60 days before foreclosure. Violations of high-cost home loan statutes can also be used as a defense against foreclosure.
Reinstatement and Redemption
In Nevada, the right to reinstate ends five days before the foreclosure sale date.
In Nevada, foreclosed homeowners are not allowed redeem the home after a nonjudicial foreclosure.
In Nevada, the bank has the right to sue the homeowner for a deficiency judgment after the foreclosure if it files the lawsuit within six months of the foreclosure sale. The following are exemptions to this rule.
- The lender is a financial institution.
- The property securing the loan is a single-family home.
- The homeowner was the owner of the property at the time of the foreclosure sale.
- The homeowner used the proceeds of the loan to purchase the property.
- The homeowner took out the loan on or after October 1, 2009.
- The property was the homeowner’s primary residence continuously after the homeowner took out the loan.
- The homeowner did not refinance the loan.
After a Nevada foreclosure sale, the buyer must give the homeowner a three-day notice to leave before starting eviction proceedings in court. For information regarding how to avoid foreclosure in Nevada, visit HUD.gov.