Due to the present national economic crisis, Nevada has maintained one of the highest foreclosure rates in the United States. (See https://www.realtytrac.com for more information and statistics.) While state laws and regulations exist to govern such proceedings and protect the borrower from misinformation, if you are at risk of losing your property to foreclosure, it is critically important to consult an experienced attorney or real estate lawyer.
Types of foreclosures in Nevada
A mortgage or trust deed holder can begin the foreclosure process anytime after a default occurs. Although there are many different types of foreclosures, Nevada permits only the two most common foreclosure proceedings: judicial foreclosures (through the court system) and non-judicial foreclosures (by a trustee utilizing a power of sale).
Judicial foreclosure involves filing a lawsuit to obtain a court order to foreclose upon a property. Judicial foreclosure occurs when there is no power of sale clause in a deed of trust or mortgage or if there are other paperwork problems. Typically, the property is auctioned to the highest bidder once all affected parties have been included in the court case. The income generated by the sale goes first to satisfy the mortgage, next to satisfy other lien holders, and then to the mortgagor (the property owner).
A non-judicial foreclosure occurs when there is power of sale clause in the deed of trust or mortgage paperwork. By granting a power of sale, the borrower knowingly authorizes the sale of their property to pay their loan balance when they are unable to do so. If they exist, specific procedures outlined in the power of sale clause, must be adhered to in the event of a non-judicial foreclosure. If the clause does not carry any stipulations, notice is served and the appropriate statutory steps must be followed. Proceeds are divided in the same fashion as the judicial foreclosure.
Simon Law, LLC can help its clients deal with foreclosure proceedings by:
- Filing paperwork
- Determining if you are eligible for statutory redemption
- Determining if you should file for bankruptcy to stay (halt) foreclosure
- Assisting in court procedures
- Assisting in negotiations with lenders and other parties for short sales of property
Contact our office to obtain foreclosure assistance from start to finish.