The US state of Nevada is primarily a title theory State, however both the non-judicial and judicial foreclosure processes are used depending on the instrument of security for the underlying loan. The non-judicial type of foreclosure takes place in the case where a trust deed has been used as the instrument of security, and with a mortgage lien a judicial foreclosures takes place.
In the case of a non-judicial foreclosure, the borrower has no rights of redemption, and in the majority this is what occurs with most Nevada foreclosure property. An uncontested foreclosure, takes approximately 120 days to finalize. If the foreclosure process is judicial the borrower has rights of redemption for 12 months.
In the case of a trust deed being used to secure the underlying loan on a property, the property remains in trust until such time as the underlying loan has been paid back in full. This means that if the borrower defaults on a loan, the trustee takes matters into their own hands without having to turn to the courts.
The borrower will more than likely have signed a title deed which contains a power of sale clause. The power of sale is a predetermined arrangement which allows the trustee rights to sell a property. The power of sale guidelines dictate that trustees have to follow a strict process when posting and delivering all the required notices of sale. The borrower is also entitled to file “intent to cure” and this must be served on the Public Trustee’s office at least 15 days before the date of sale.
Deficiency judgments are allowed in Nevada, but the lender has to file for this court action within 90 days of the sale of the property. This is the case for both judicial and non-judicial foreclosures.