How foreclosure works in Nevada

The notices you will receive in Nevada, in order

1. Pre-foreclosure notice and a call about your options

   From your servicer, at least 30 days after you default and at least 30 days before a Notice of Default

   The letter must show the amount needed to catch up, your loan balance, your payment history dates and the foreclosure options the servicer offers. It must also say you can ask for copies of your note, deed of trust, any assignments and your payment history. The servicer must also contact you, or try by mail and at least 3 phone calls, to talk about avoiding foreclosure.

   NRS 107.500, 107.510

2. Notice of Default and Election to Sell

   Recorded by the trustee in your county and mailed to you by registered or certified mail

   This starts the formal foreclosure and describes what you owe. It comes with a notarized affidavit about who has the right to foreclose and a statement of the amount needed to reinstate. It must also be posted on the home at least 100 days before any sale. Note the recording date, because the 3-month clock runs from it.

   NRS 107.080(2), (3); NRS 107.0805; NRS 107.087

3. Home Means Nevada mediation notice and forms

   Mailed with the Notice of Default and also sent separately, for a home you live in

   The packet must include contact information for someone who can negotiate a loan modification, a HUD-approved housing counselor, a notice from Home Means Nevada, Inc. about mediation, a waiver form and two addressed envelopes. You have 30 days after you are served to file a petition for mediation or return the waiver.

   NRS 107.086(2), (3)

4. Letter about foreclosure prevention options

   From the servicer, within 5 business days after the Notice of Default is recorded

   If the servicer offers options and you have not already gone through its application process, it must tell you that you may be evaluated, whether you need to send a complete application and how to get one. Apply as soon as you can.

   NRS 107.500(2)

5. YOU ARE IN DANGER OF LOSING YOUR HOME notice

   Served on you by the trustee at least 60 days before the sale

   For a home you live in, this notice is served in person or by leaving it at your home or work and mailing a copy. It lists places to call for help, such as the Attorney General, the Division of Mortgage Lending, legal services and your lender, with a copy of your promissory note attached.

   NRS 107.085

6. Notice of Sale

   From the trustee, after the 3 months and a mediation certificate; posted on the home at least 15 days before the sale

   It gives the date, time and place of the auction and the trustee's contact information for checking the status of the foreclosure. It is also recorded, mailed or served to you, posted in a public place for 20 days and published once a week for 3 weeks. Tenants get a separate notice explaining their rights.

   NRS 107.080(4); NRS 107.087

7. 3-day notice to quit, then a summons and complaint

   From the new owner, after the sale and once title is perfected

   A former owner must first get a written 3-day notice to surrender. If you stay, the new owner must file a formal eviction case and serve you with a summons and complaint. The quick summary eviction process cannot be used against a former owner after foreclosure.

   NRS 40.255(1)

The legal steps in Nevada

1. Missed payments and a pre-foreclosure notice

   Under a federal rule, your servicer generally cannot start foreclosure until you are more than 120 days behind. Nevada adds that at least 30 days after you default and at least 30 days before a Notice of Default, the servicer must mail you a summary of your account, the amount to catch up and the options it offers. It must also contact you, or try to, to talk about ways to avoid foreclosure, and wait 30 days after that contact.

   12 C.F.R. § 1024.41(f); NRS 107.500, 107.510

2. Notice of Default and Election to Sell

   The trustee records a Notice of Default and Election to Sell in your county and mails you a copy by registered or certified mail. For a home you live in, the packet must include a person who can negotiate a loan modification, a HUD-approved housing counselor and a notice from Home Means Nevada, Inc. about foreclosure mediation. At least 3 months must pass before the trustee can give notice of a sale.

   NRS 107.080(2), (3); NRS 107.086(2); NRS 107.0805

3. Ask for foreclosure mediation within 30 days

   If the home is your primary residence, you can file a petition for mediation with the district court within 30 days after you are served with the Notice of Default. If you file on time and pay your fees, the sale cannot go forward until mediation is done. If you do nothing, Home Means Nevada issues a certificate that lets the trustee move ahead.

   NRS 107.086(3), (4)

4. Notice of Sale

   After the 3 months and after a mediation certificate is recorded, the trustee records a Notice of Sale and serves or mails it to you. The notice is posted in a public place for 20 days and published once a week for 3 weeks. For a home, a copy must also be posted on the property at least 15 days before the sale, and a separate notice goes to any tenants.

   NRS 107.080(4); NRS 107.087

5. Last chances before the sale

   For a home you live in, you can catch up on the missed payments and costs until 5 days before the sale date. A complete application for a loan modification or other option generally stops the servicer from recording notices or holding the sale while it is reviewed. If no Notice of Sale is recorded within 9 months of the Notice of Default, or no sale is held within 90 days of the Notice of Sale, the foreclosure must be cancelled, with some time limits paused for mediation, applications and bankruptcy.

   NRS 107.0805(1)(a); NRS 107.530; NRS 107.550

6. Trustee sale (auction)

   The trustee sells the home at a public auction to the highest cash bidder, between 9 a.m. and 5 p.m., at the place your county sets for these sales. The sale can be postponed out loud at the auction up to 3 times, and after that a new notice is needed. There is no right to buy the home back after a trustee sale.

   NRS 107.080(5); NRS 107.081; NRS 107.082

7. After the sale: deed, eviction and leftover money

   The trustee's deed must be recorded within about 30 days and a copy posted on the home. The new owner must give a former owner a written 3-day notice and then win a formal eviction case in court before you can be removed. Tenants generally get at least 60 days' notice. Any money left after sale costs, the loan and junior liens goes to you.

   NRS 107.080(10), (11); NRS 40.255; NRS 40.462

Common questions in Nevada