What is Foreclosure?
A foreclosure happens when, for whatever reason, a homeowner is unable to continue paying off their home loan. Deciding to enter foreclosure is rarely voluntary, however can often result from loss of income, excessive debt, unexpected expenses, or divorce. A Foreclosure is the process of forfeiting a mortgaged property after failing to pay the remaining balance.
In the state of Nevada, the steps of foreclosure cannot begin until 120 days after a missed payment. This grace period allows for the homeowner to review their options with a foreclosure attorney and discuss the possible foreclosure alternatives such as a loan modification or other payment plan.
Once a home loan lender begins to issue a notice of foreclosure, the following steps may occur:
- Notice of Default and Election to Sell
- An NOD is recorded with the county recorder and posted on the property providing the homeowner three months to resolve the remaining debt on the property.
- Foreclosure Mediation
- Nevada state law requires that the homeowner facing foreclosure be given the opportunity to participate in mediation at this time.
- Danger Notice
- The homeowners are presented with a notice at least 60 days prior to the sale that they are in danger of losing their home to foreclosure.
- The original promissory note signed at the time of the home purchase is attached for clarity.
- Notice of Sale/Notice of Tenants
- After the three month period specified by the NOD is exhausted, the homeowner and all tenants of the foreclosed property are notified of the projected date of sale.
- The notice must be sent and posted on the property at least 20 days prior to the date of sale.
- Reinstatement Before Sale
- Under Nevada State Law, the homeowner has until five days prior to the sale to pay all fees and remaining payments in order to reinstate their ownership.
- Foreclosure Sale
- The property is sold and if necessary, so begins the eviction process.
Worried you may be facing a foreclosure? Our experienced attorneys can help guide you at any stage of the foreclosure process. For questions, or to set up a meeting, contact our office at (702) 998-1188 or info@ljlawlv.com.
For more information, and to hear our experienced foreclosure attorney’s discuss the foreclosure process, check out “What is Foreclosure?” on our Youtube channel.