I own a home in Las Vegas, Nevada. I am a few months delinquent in my mortgage payments and the house is now in foreclosure. I've read online that foreclosed homeowners can "redeem" their house after the foreclosure sale and get it back. Is this true?
You might get the chance to repurchase or “redeem” your home after losing it in foreclosure, but it’s unlikely. In Nevada, foreclosed homeowners can redeem the home after foreclosure only under certain circumstances. If your foreclosure is the same as most Nevada foreclosures, you won’t be eligible to redeem the home.
Your Right to Redeem in a Nutshell
Whether you can redeem your home depends on whether the foreclosure was judicial (where the lender files a lawsuit in court to foreclose your home) or nonjudicial (where the foreclosure takes place without court supervision). In a nutshell, here are the rules about redeeming the home after foreclosure in Nevada:
- Judicial foreclosure. If the foreclosure was judicial, you get one year after the foreclosure sale to redeem your home (Nev. Rev. Stat. § 21.210).
- Nonjudicial foreclosure. If the foreclosure was nonjudicial, you can’t redeem your home after the foreclosure sale (Nev. Rev. Stat. § 107.080(5)).
In Nevada, most foreclosures are nonjudicial with no right of redemption after the sale.
Judicial Foreclosures: When You Do Have the Right to Redeem
If the foreclosure was judicial, you'll have to pay the full purchase price within one year in order to get your home back. Below are the details.
How Much Will You Have to Pay?
If you do get a redemption period, in order to redeem you must reimburse the purchaser (the person or entity, such as the bank, who bought it at the foreclosure sale) for the full amount of the purchase price plus 1% per month, together with all additional lawful charges such as:
- the amount of any assessment, taxes, or payments toward liens that the purchaser paid after the sale, and
- interest on that amount (Nev. Rev. Stat. Ann. § 21.210).
What If You Don't Redeem Within One Year?
If you don’t redeem the home within the one-year time frame, your right to redeem expires. After that, you won’t have another opportunity to get your house back. (Learn more general information about the right of redemption.)
Don’t Wait Until After the Foreclosure Sale to Save Your Home
Since foreclosed homeowners in Nevada usually don’t get a redemption period after the foreclosure, in most cases, you’ll need to take action before the sale if you want to keep your home. Contact your mortgage servicer (the company you make your mortgage payments to) as soon as possible to learn about options to avoid foreclosure. For example, you could:
- pay off the past-due amounts to reinstate (catch up on) the mortgage, or
- work out a mortgage modification, forbearance agreement, or repayment plan.
Once started, most foreclosures in Nevada take just a few months to complete. Be sure to explore alternatives to foreclosure as early in the process as possible to ensure you have enough time to work out a deal before the sale takes place. (To learn more about foreclosure laws and procedures in Nevada, visit Nolo’s Nevada Foreclosure Law Center.)
How to Locate Nevada’s Redemption Laws
To find the statutes that discuss your right to redeem the home after a judicial or nonjudicial foreclosure in Nevada, go to Chapter 21 and Chapter 107 of the Nevada Revised Statutes.