Nevada is a leading state for commercial real estate, most notably in the hospitality sector. If you are a lender who manages loans secured by multi-unit commercial real estate, you may wonder what your options are when faced with the need to complete a foreclosure in Nevada. The state of Nevada offers both judicial and non-judicial foreclosure as courses of action.
Total Lender Solutions offers lending teams the resources they need to complete a commercial real estate foreclosure within compliance, maximizing your return on your assets while protecting your team from penalties.
Read below to learn more about Nevada foreclosure law.
Is Nevada a Non-Judicial Foreclosure State?
Nevada allows for both judicial and nonjudicial foreclosure of commercial properties. The majority of commercial foreclosures are non-judicial. The popularity of nonjudicial foreclosures is because these foreclosures have more protections for both the lender and the borrower, and they are simpler, faster, and cheaper to foreclose.
In order to be able to foreclose a property non-judiciously, the deed of trust for the property that secures the loan must contain a power of sale clause. This allows the lender to foreclose the property, in the case of a default or a breach of contract, without filing a lawsuit through the county court.
Like many states where both judicial and non-judicial foreclosure are used, Nevada has a one-action rule, which states that you must pursue only one action for the recovery of any debt. This means that, except for in limited special circumstances, lenders must pursue the real property.
What is the Non-Judicial Foreclosure Process in Nevada?
In the state of Nevada, if a borrower defaults,, there is a mandatory waiting period of at least 30 days before the lender can send a statement outlining the necessary steps to rectify the loan prior to the official initiation of the foreclosure process.
In residential properties, Nevada law stipulates that the borrower must be given the opportunity to engage in mediation. If no alternative agreement can be reached, a Notice of Default may be issued by the trustee. The borrower is granted a grace period of ninety days to resolve the default.
After the conclusion of the three-month period specified in the Notice of Default, the notice of sale is sent. A copy of the NOS is sent to the IRS if there is a federal tax lien on the property. The borrower receives the NOS at least 20 days before the sale date. This notice must be prominently displayed in a public location and published in a county newspaper once a week for three consecutive weeks leading up to the sale. The property is then sold to the highest bidder at the location on the date and time specified in the NOS.
How to Complete a Non-Judicial Foreclosure in Nevada
Experiencing the threat of foreclosure can be an overwhelming situation, but you don’t need to navigate it alone. Enlisting the services of a trusted foreclosure specialist such as Total Lender Solutions can have a favorable impact on your foreclosure. Our team’s knowledge and years of experience means we can craft a tailored solution, leading your team to a good outcome.
If you’re currently dealing with foreclosure, don’t hesitate to contact our team by filling out our contact form today!