Nevada Foreclosure Laws and Procedures

Learn about the steps in a Nevada foreclosure, including notices the lender must provide to you.

Don’t get caught off guard if you're facing a potential foreclosure in Nevada. Read on to find out each step in a Nevada foreclosure—from missing your first payment all the way to eviction—and learn about your rights during the process.

Nevada Mortgage Loans

When you take out a loan to purchase residential property in Nevada, you'll likely sign a promissory note and a deed of trust. A promissory note is basically an IOU that contains the promise to repay the loan and the terms for repayment. The deed of trust provides security for the debt that's evidenced by a promissory note. If you fail to make the payments, the deed of trust gives the lender the right to sell the home so it can recoup the money it loaned you.

What Happens When You Miss a Payment

If you miss a payment, most loans include a grace period of ten or fifteen days, after which time the loan servicer will assess a late fee. The late fee is generally around 5% of the overdue payment of principal and interest based on the note's terms. To find out the late charge amount and grace period for your loan, look at the promissory note you signed. This information is also on your monthly mortgage statement.

What Happens When You Fall Behind in a Few Payments

If you miss a few mortgage payments, your servicer will probably send a letter or two reminding you to get caught up and call you to try to collect the payments. Don’t ignore the phone calls and letters. This preforeclosure period presents a good opportunity to discuss loss mitigation (foreclosure avoidance) options and attempt to work out an agreement, like a loan modification, forbearance, or repayment plan.

When Can Foreclosure Start?

Under federal laws that went into effect January 10, 2014, the servicer normally must wait until you're 120 days delinquent on payments before making the first official notice or filing for any nonjudicial or judicial foreclosure. This 120-day period should give you sufficient time to explore loss mitigation opportunities.

Preforeclosure Notice

At least 30 calendar days before officially starting a foreclosure and at least 30 calendar days after the default, the servicer or owner of the loan has to send you (the borrower) a notice that contains information about the account. The notice must include the total amount needed to cure the default and information about foreclosure prevention alternatives, among other things. (Nev. Rev. Stat. § 107.500).

Nevada Foreclosure Procedures

In Nevada, most residential foreclosures are nonjudicial. The lender can foreclose without going to court if the deed of trust contains a power of sale clause.

Notice of Default and Election to Sell

The Nevada nonjudicial foreclosure process formally begins when the trustee, a third-party, records a Notice of Default and Election to Sell (NOD) in the office of the recorder in the county where the property is located, providing three months to cure the default. (Nev. Rev. Stat. § 107.080).

Mailing requirements. A copy of the NOD must be sent to each person who has a recorded request for a copy and each person with an interest or claimed interest in the property by registered or certified mail within ten days after the NOD is recorded. (Nev. Rev. Stat. § 107.090).

Posting requirements. If a residential foreclosure, a copy of the NOD must be posted on the property. (Nev. Rev. Stat. § 107.087).

Affidavit requirement. The trustee or beneficiary (lender) must record a notarized affidavit along with the NOD that states, based on a review of business records, including all of the following information.

  • The full name and business address of the current trustee or the current trustee’s personal representative or assignee, the current holder of the note secured by the deed of trust, the current beneficiary of record and the current servicer of the obligation or debt secured by the deed of trust.
  • That the beneficiary under the deed of trust, the successor in interest of the beneficiary or the trustee is in actual or constructive possession of the note secured by the deed of trust; or that the beneficiary or its successor in interest or the trustee is entitled to enforce the obligation or debt secured by the deed of trust.
  • That the beneficiary or its successor in interest, the servicer of the obligation or debt secured by the deed of trust or the trustee, or an attorney representing any of those persons, has sent to the borrower a written statement including the amount needed to cure the default, the principal amount of the debt, the accrued interest and late charges, a good faith estimate of all fees, contact information for obtaining the most current amounts due, and each assignee of the deed of trust. (Nev. Rev. Stat. § 107.0805).

Foreclosure Mediation

Nevada law requires that borrowers in foreclosure get the option to participate in mediation if the property is owner-occupied. (Nev. Rev. Stat § 107.086).

Danger Notice

At least 60 days prior to the sale date, the trustee must provide the borrower with a separate “Danger Notice” stating that they are in danger of losing their home to foreclosure, along with a copy of the original promissory note.

The notice must be:

  • personally served to the borrower
  • left with a person of suitable age and discretion (if the borrower is not available) and a copy mailed, or
  • if a person of suitable age and discretion is not available, then the notice may be posted in a conspicuous place on the property, left with a person residing in the property, and then mailed to the borrower. (Nev. Rev. Stat § 107.085).

Notice of Sale

After expiration of the three-month period following the NOD recording, the trustee must give notice of the time and place of the sale by recording the notice of sale and by:

  • providing the notice of sale to each required party by personal service or by mailing the notice by registered or certified mail to the last known address 20 days before sale
  • posting the notice of sale on the property 15 days before the sale
  • posting the notice of sale for 20 days successively in a public place in the county where the property is situated, and
  • publishing a copy of the notice of sale three times, once each week for three consecutive weeks, in a newspaper of general circulation in the county where the property is situated. (Nev. Rev. Stat §§ 107.080, 107.090.)

Notice to Tenants

A separate notice for tenants must be posted in a conspicuous place on the property and mailed. (Nev. Rev. Stat. § 107.087).

Reinstatement Before Sale

For owner-occupied housing, the borrower gets a right to reinstate by paying the arrearage, costs, and fees. This right expires five days prior to the date of the foreclosure sale. (Nev. Rev. Stat. § 107.0805).

The Foreclosure Sale

At the foreclosure sale, the property will be:

  • sold to the highest third-party bidder or
  • revert to the foreclosing lender and become REO.

Deficiency Judgment Following Sale

In a foreclosure, the total debt that the borrower owes sometimes exceeds the foreclosure sale price. The difference between the sale price and the total debt is called a “deficiency.” In some states, the lender can seek a personal judgment, called a "deficiency judgment," against the debtor to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount from the borrower.

In Nevada, a lender may obtain a deficiency judgment following a foreclosure sale if it files the suit within six months. But the amount of the judgment is limited to the lesser of:

  • the difference between the total debt and fair market value of the home, or
  • the difference between the total debt and foreclosure sale price.

For loans taken out after October 1, 2009, deficiencies are prohibited for purchase money loans (that have not been refinanced) held by a bank or other financial institution on single-family residences owned by the borrower at the time of the foreclosure sale, which have been occupied continuously by the borrower since taking out the loan. (Nev. Rev. Stat. § 40.455). (Find out more about Deficiency Judgments After Foreclosure in Nevada.)

Redemption Period

Some states give foreclosed borrowers a post-sale redemption period during which they can pay off the total debt or reimburse the purchaser from the foreclosure sale to reclaim the property. However, Nevada law doesn't provide a redemption period following a nonjudicial foreclosure sale. (Nev. Rev. Stat. § 107.080).

Eviction Following Foreclosure

If you, a foreclosed homeowner, don't vacate the property following the foreclosure sale, the new owner will likely:

  • offer you a cash-for-keys deal or
  • give you a notice to quit (leave) before filing an eviction lawsuit.

Tenants receive some protection from eviction under the federal Protecting Tenants at Foreclosure Act.

Talk to an Attorney

This article contains details on foreclosure laws in Nevada, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you’re facing a foreclosure.

If you have questions about Nevada's foreclosure process or want to learn about potential defenses to a foreclosure, consider talking to a foreclosure attorney. It’s also a good idea to talk to a HUD-approved housing counselor if you want to learn about different loss mitigation options.

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