The Total Lender Solutions team operates in a few different states, and understanding each state’s foreclosure laws and procedures is crucial to us and our clients. In this series, we’ve reviewed the non-judicial foreclosure process in California, Arizona, and Texas. While these processes generally follow the same guidelines, there are some differences from state to state. We’ll conclude the series with a look at what lenders need to know about Nevada’s non-judicial foreclosure process.
Non-Judicial Foreclosure in Nevada: How It Benefits Lenders
Regardless of the state, non-judicial foreclosures benefit both borrowers and lenders. In Nevada, lenders will find that keeping courts out of the process generally makes it an easier and quicker one; for both borrowers and lenders, non-judicial foreclosure is almost always significantly less expensive. As with other states, Nevada lenders do not need the court’s permission to begin foreclosure proceedings, nor do they need to get the court’s permission to sell a foreclosed property. In addition, Nevada law does not provide a redemption period after the foreclosure - which may provide further incentive for borrowers to come to an agreement with lenders before the foreclosure process begins in earnest.
Non-Judicial Foreclosures: Important Steps for Nevada Lenders
Nevada’s foreclosure laws are extremely complex. Lenders can reduce their exposure by making sure that they follow the state’s requirements. Adhering to the steps in the process is crucial. Here are some to keep in mind.
At least 30 days before starting a foreclosure, and at least 30 days after the default, the lender must inform the borrower of the total amount needed to cure the default, and provide information about possible foreclosure alternatives. In Nevada, if a property is owner-occupied, the law requires that the borrower have the option to participate in mediation. The foreclosure formally begins when the trustee records a Notice of Default and Election to Sell; this is recorded in the office of the recorder in the county where the property is located. Copies of the NOD must be sent to the borrower and anyone else with an interest in the property (for residential properties, the notice must be posted on the property 100 days before the sale). At this point, the borrower has three months to cure the default.
No later than 60 days before the sale, Nevada requires that a separate “danger notice” be issued to the borrower. This informs the borrower that they are in danger of losing the property; a copy of the original promissory note must be included. Once the three-month NOD mark has passed, the sale can proceed. The trustee must give notice of the time and place of the sale by recording a notice of sale. The borrower must receive notice, either by certified mail or personal delivery, 20 days before the sale. The notice must also be displayed in a public place 20 days before the sale, and a copy of the notice must be published in a county newspaper once a week for the three consecutive weeks leading up to the sale. Nevada borrowers do have a right to reinstate a loan for owner-occupied housing, but that right expires five days prior to the date of sale. For commercial foreclosures, the right to reinstate expires 35 days after the recorded NOD is sent to the borrower.
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.