Notice of Default
- Once a seller stops paying on their mortgage, their Lender can record what is called a Notice of Breach or Default (also known as a NOD-See NRS 107.080 (4)). The Lender can record this any time after you become delinquent. There is no average time, we have seen homes slipped by the way side and never get an NOD recorded for years and we have seen them recorded 6 months after a person is delinquent. Sometimes a year and a half after the person is delinquent.
- The Lender must mail the Notice of Default to the homeowner by registered or certified mail. Three months must pass after the Notice of Default is posted before the Lender can record the Notice of Sale.
- For investment properties, the Notice of Default must include adequate notice to any tenants that live at the property.
- For owner-occupied homes, the Notice must inform the homeowner of their right to participate in the Foreclosure Mediation program.
- If the homeowner elects to participate in mediation, the foreclosure must be put on hold until the mediation is complete and a certificate of compliance is issued. Furthermore, the mediation must occur within 135 days of the homeowner electing to mediate.
Notice of Sale/Election to Sell/Trustee Sale Notice
- Once the three months have passed, or if the home is owner occupied and the homeowner elects to participate in the mediation process and the mediation process is complete and the Lender has been issued a certificate of compliance from the Supreme Court, the Lender can proceed with the foreclosure by electing to sell the property.
- In order to sell the property, the Lender must mail to the homeowner, either by registered or certified mail, a Notice of Sale.
- The Notice of Sale must also be clearly posted on the home for 20 days, and must be published in a prominent newspaper publication within the county that the home is located in for three consecutive weeks (at least one day each week).
- A separate notice also needs to be posted on the home, notifying the tenants of their rights in the event of the sale.
- After selling the property at the conclusion of the foreclosure sale, the Lenders can bring suit against the homeowner for the deficiency.
- The deficiency is defined as the difference in amount owed by the foreclosed homeowner, plus any interest and fees minus the fair market value of the foreclosed home.
- Mortgages originated AFTER October 1, 2009, may qualify as a nonrecourse loan, meaning that the Lender CANNOT go after any deficiency.
- For a nonrecourse loan, the following must occur:
- The homeowner must own the single family dwelling at the time of the initiation of the foreclosure sale.
- Homeowner must have used the loan to purchase the home.
- The homeowner must have continuously lived in the property since purchasing the property.
- Must be the homeowner`s primary residence.
- The homeowner must NOT have refinanced the loan since originally purchasing the home.
For more information on Deficiency Judgments click here!
Please feel free to contact us today so that we may discuss the options that are available to you.
Van and Associates Law Firm at 702-529-1011