How foreclosure works in Nebraska

The notices you will receive in Nebraska, in order

1. Notice of default

   Recorded by the trustee or its attorney with the county register of deeds; a copy is mailed to you within 10 days

   This is the first official step in an out-of-court trustee sale. It names your trust deed, says what the default is, and says the trustee plans to sell. From the day it is recorded you have 1 month to cure by paying the past-due amount and limited fees, so call your servicer for the exact figure right away.

   Neb. Rev. Stat. §§ 76-1006, 76-1008, 76-1012

2. Notice of trustee's sale

   Published once a week for 5 weeks, starting at least 1 month after the notice of default; mailed to you at least 20 days before the sale

   This notice gives the date, time and place of the auction. The last newspaper notice must run 10 to 30 days before the sale. Write down the trustee's name and contact details, because the trustee is who you call to confirm or check on the sale.

   Neb. Rev. Stat. §§ 76-1007, 76-1008

3. Summons and complaint

   Served on you when the lender files in the district court of your county, after the federal 120-day wait

   These papers start a court foreclosure. You have 30 days after you are served to file an answer. If you do nothing, the lender can ask for a default judgment.

   Neb. Rev. Stat. § 25-2137; Neb. Ct. R. Pldg. § 6-1112

4. Decree of foreclosure

   Entered by the judge if the lender wins the case

   The decree sets the amount owed and orders the home sold. From the day it is entered you have only 20 days to file a written request to stay the sale, and the court cannot give you more time.

   Neb. Rev. Stat. §§ 25-2138, 25-1506

5. Notice of sheriff's sale

   Published once a week for 4 weeks and posted at the courthouse before a court-ordered sale

   This notice sets the date and place of the sheriff's auction. You can still redeem the home after this sale, until the judge confirms it.

   Neb. Rev. Stat. §§ 25-1529, 25-1530

6. Notice of confirmation hearing

   Mailed by certified mail at least 10 days before the hearing to confirm a sheriff's sale

   This notice must also explain the homestead exemption procedure. At the hearing, you can object if the sale was not done properly or the price was far too low. If you never got this notice, you can ask the court to set the sale aside within 60 days after it is confirmed.

   Neb. Rev. Stat. § 25-1531

7. Notice to leave the premises

   Given at least 3 days before the buyer files an eviction case

   If you are still in the home after the sale, the buyer must give you written notice to leave and then file a forcible entry and detainer case. The court holds the trial 10 to 14 days after the summons is issued.

   Neb. Rev. Stat. §§ 25-21,221, 25-21,223

The legal steps in Nebraska

1. Missed payments

   Under a federal rule, your servicer generally cannot start a foreclosure until you are more than 120 days behind. Use this time to call your servicer and a free HUD-approved housing counselor and apply for help such as a repayment plan or loan modification.

   12 C.F.R. § 1024.41(f)

2. Notice of default is recorded (trust deed)

   For a trust deed, the trustee or its attorney records a notice of default with the county register of deeds. It must say what the default is and that the trustee plans to sell. A copy must be mailed to you within 10 days after it is recorded. You then have 1 month to cure the default by paying the past-due amount plus limited fees, which reinstates the loan.

   Neb. Rev. Stat. §§ 76-1006, 76-1008, 76-1012

3. Notice of trustee's sale

   After at least 1 month (2 months for some farm property), the trustee publishes a notice of sale in a local newspaper once a week for 5 weeks in a row. The last notice must run 10 to 30 days before the sale, and a copy must be mailed to you at least 20 days before the sale.

   Neb. Rev. Stat. §§ 76-1006, 76-1007, 76-1008

4. Or: a foreclosure lawsuit (mortgage)

   If you have a mortgage, or the lender chooses court, you are served with a summons and complaint from the district court. You have 30 days after service to file an answer. Before the court enters its decree, you can have the case dismissed by paying the past-due principal, interest and costs.

   Neb. Rev. Stat. §§ 25-2137, 25-2148; Neb. Ct. R. Pldg. § 6-1112

5. Decree and request to stay the sale (court cases)

   If the judge orders the home sold, you have 20 days after the decree to file a written request to stay the sale. The stay is 9 months, but it is 3 or 6 months for many home loans, depending on how many years were left on the loan when the case was filed. Filing the request gives up your right to appeal the decree, so get legal advice first.

   Neb. Rev. Stat. § 25-1506

6. The sale

   A trustee sale is a public auction held between 9 a.m. and 5 p.m. at the home, the county courthouse, or another county building. A court sale is run by the sheriff after 4 weeks of newspaper notice. Anyone can bid. After a trustee sale you cannot buy the home back. After a sheriff's sale, you can still redeem until the judge confirms the sale.

   Neb. Rev. Stat. §§ 76-1007, 76-1009, 76-1010, 25-1529, 25-1530

7. Confirmation, leftover money and moving out

   In a court case, the judge must confirm the sheriff's sale, and you must get at least 10 days' notice of the hearing. Any money left after the debt and costs goes to junior lienholders and then to you. If you stay in the home, the buyer must give you at least 3 days' written notice and then file an eviction case in court.

   Neb. Rev. Stat. §§ 25-1531, 76-1011, 25-2146, 25-21,221

Common questions in Nebraska