The foreclosure procedures in Nevada and how to avoid it
Welcome back!
Nevada has one of the highest rates of foreclosure of any state and 6 out of 10 of the highest zip codes in the country. If you are a home owner that is facing possible foreclosure then it is important that you understand the procedure and how to avoid foreclosure.
The state of Nevada uses the judicial process of foreclosure. This involves the lender filing a lawsuit to obtain a court order to foreclose. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.
In the state of Nevada the borrower has one year after the foreclosure to redeem the property if the judicial foreclosure process was used.
Non-Judicial Foreclosure
While the state of Nevada uses a judicial process there is also an option for non-judicial foreclosure. This process may be used when there is a power of sale clause in a mortgage. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A copy of the notice of default and election to sell must be mailed certified, return receipt requested, to the borrower, at their last known address, on the date the notice is recorded in the county where the property is located. Any additional postings and advertisements must be done in the same manner as for an execution sale in Nevada.
Beginning on the day after the notice of default and election was recorded with the county and mailed to the borrower, the borrower has anywhere from fifteen (15) to thirty five (35) days to cure the default by paying the delinquent amount on the loan. The actual amount of time given is dependent on the date of the original deed of trust.
The owner of the property may stop the foreclosure proceedings by filing”Intent to Cure” with the Public Trustee’s office at least fifteen (15) days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day before the foreclosure sale is scheduled.
The foreclosure sale itself will be held at the place, the time and on the date stated in the notice of default and election and must be conducted in the same manner as for an execution sale of real property.
Lenders have three months after the sale to try and obtain a deficiency judgment. Borrowers have no rights of redemption.
Since Nevada has a “right to cure law” this gives you an opportunity to contact your lender and attempt to make arrangements for a foreclosure. When trying to make arrangements to satisfy the bank you will have several options. These options include:
Refinancing
Short sale
Mortgage modifications
A loan modification can in many cases be the answer to the problem. Like anything else there are benefits and disadvantages to a mortgage modification. We have compiled a list of the advantages and disadvantages for you to consider.
ADVANTAGES:
A successful Loan Modification will supply you with the following:
1. an interest rate reduction. Under President Obama’s current program this rate may be as low as 2%.
2. The advantage of having the reinstatement amount (total amount of late payments) deferred to the back end of the mortgage and added to the current principle.
3. A reduction in the actual principle balance of the loan
4. Has many of the same features of a refinance, without the high cost.
DISADVANTAGES:
1.You only get one shot at the Loan Modification so you need to get it right the first time. It is important that you make sure your mortgage modification sets up payment perimeters you can afford.
2. Your mortgage company does not earn money making you modifications so they will most likely offer you terms that are not actually helpful.
3. Due to the high rate of foreclosures there are an abundance of scams out there set up to take your money, that promise to help you with negotiations. To avoid these scams NEVER PAY A DOWNPAYMENT TO ANYONE OFFERING TO ASSIST IN A MORTGAGE MODIFICATION.
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit oUR WEBSITE Saint Jude’s Mortgage Rescue
-
About the Author:
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com Saint Jude’s Mortgage Rescue
Article Source
