Foreclosure in any aspect is a negative situation. No homeowner will ever want to foreclose their home because of any financial crisis. But if the situation of foreclosure occurs the homeowner should be aware of the procedure of how to stop foreclosure in Nevada. Facing foreclosure is an awful situation. There are two ways through which the Foreclosure process takes place: Judicial and Non-Judicial. Nevada allows both types of foreclosures, judicial and non-judicial foreclosures. The foreclosure process has to follow state laws.
If you are currently in foreclosure it’s important for you to know, how you can stop foreclosure from taking place. There are various options you can opt for to stop a foreclosure from happening.
What Does Foreclosure Means?
Taking a loan from a bank or a lender to buy a house or property is very common everywhere. Paying back the borrowed amount in the given time duration is also very important. If someone fails to pay back the loan amount, the foreclosure situation is very likely to come into existence. Foreclosure begins after the very first missed payment.
Foreclosure can also happen if the homeowner fails to pay the property tax levied upon them. There are various reasons for falling behind in payments like, financial crisis, medical emergencies, and sudden loss of job.
Introduction to Foreclosure in Nevada
The foreclosure crisis peaked in 2010. The foreclosure process and mortgage services were heavily supported by state and federal laws after that. In Nevada, people must sign a promissory note and mortgage when they take a loan to buy property. These documents give people some contractual rights as well.
Nevada foreclosures most likely give you the right to many benefits. They are:
- Receive notice in the form of a breach letter before foreclosure.
- You can apply for loan mitigation.
- If you are in the military, you will get special protection.
- Get notified about the foreclosure and chance to respond legally.
- Pay off your debt to prevent a foreclosure sale.
- You can redeem the property after the sale.
- Get any excess money after a foreclosure sale.
Key Points About Nevada Foreclosures
- Primary Security Instrument- Mortgage and Deed of Trust
- Judicial Foreclosure- Yes
- Non-Judicial Foreclosure- Yes
- Right of Redemption- Yes
- Timeline- Typically 120 Days
- Deficiency Judgements Allowed- Yes
Ways to Stop Foreclosure in Nevada
There are ways of stopping home foreclosures in Nevada that you need to know. Let’s cover them all:
Declare Bankruptcy
Yes, bankruptcy is a way through which foreclosure can be stopped. But you need to understand the concept of chapter 7 and chapter 13 of bankruptcy.
Chapter 13 bankruptcy in Nevada: It is a common option to go for to stop foreclosure. According to chapter 13 bankruptcy, you are given a payment plan of 3 or 5 years to catch up with the payment in arrears. The lenders will be given orders to stop going forward with the foreclosure process. They will have to give you time to get back to your payment arrangements.
Chapter 7 bankruptcy in Nevada: It is a liquidation form of bankruptcy. Unless you want the Nevada bankruptcy trustee to sell your house, it may be a less common option to pursue. Even though it is the lower-cost bankruptcy option, you still may not want to opt for this option.
You need to understand what your payment plan is. Is your payment plan regarding chapter 13 bankruptcy worth pursuing? For instance: you have $150,000 in arrears on your house and your payment plan is for 5 years / 60 months. Will you be able to pay an additional $2,500 every month to cover your arrears?
Applying for Loan Modification
It has become difficult to fully pay off the mortgage payments. There are many reasons why you can miss out on payments or get late in paying the mortgage. Before this unwanted thing happens, you may go to your lender and find out if they consider a loan modification option.
Reinstating Your Loan
Do you have enough cash to pay off all the loan amount? Approach your lender with a cash offer for your house in Nevada. See if they accept the payment and permit you to continue paying your loan amount without any legal interference. Lenders only want to recover the loan amount and so they will accept your offer.
» Nevada Lenders: Read the blog to know about the best mortgage lenders in Nevada.
Plan for Repayment
Great! You can make payments again after missing out on some payments. Find out what your lender thinks regarding your repayment plan. In the repayment plan, you are allowed to pay the missed payments slowly along with the current mortgage payments. You can come up with an agreement on the repayment plan to stop foreclosure. According to this, you agree to pay your missed payments along with the normal payments.
Refinancing
Refinancing may be a difficult option to consider. Interest rates are going up only making it difficult to think of loans. You can start with a new lender, which means a whole new agreement. There may be one drawback. It might become difficult to qualify for refinancing if your credit score is negatively affected.
» How to Buy a House With Bad Credit in Nevada: Read the blog to know how you can buy a house with bad credit.
Sell Out Your Home
It’s really sad even to think of selling your house. But it is actually a good option to consider selling your house in Nevada to avoid foreclosure. You may receive an amount more than the actual price of your home. Perhaps you could even buy a house worth more than the one you sold. You can stop something drastic from happening and your credit report will also not get spoilt.
Short Sale
A short sale means that you can sell your home for an amount that is less than the amount you owe. The reason behind this is that sometimes foreclosure homes are sold for a lesser amount in the auction. The bank/lender is sometimes not able to recover the whole amount they are hoping for. Home staging companies in Nevada can help you get more than the asking price.
Deed In Lieu of Foreclosure
A deed in lieu of foreclosure takes place when the homeowner transfers the property to the lender. The homeowner hand over the property to the lender, clearing all the debts they owe. The property is then owned by the lender. You have to vacate the property as soon as possible. This way you can easily save yourself from any damage.
Frequently Asked Questions
How long does it take to foreclose in Nevada?
Approximately 120 days
Typical Nevada Foreclosure Time Frame: Approximately 120 days. Judicial Foreclosure Available? : Yes. Non-Judicial Foreclosure Available? : Yes. Types of Security Instruments Utilized: Mortgage and Deed of Trust.
What are the foreclosure laws in Nevada?
Nevada law requires three foreclosure notices (in addition to a preforeclosure notice): a notice of default, a danger notice, and a notice of sale. Notice of default and election to sell.
Does Nevada have a redemption period after foreclosure?
Nevada law allows for both judicial and non judicial foreclosures. If a lender pursues a foreclosure through the judicial system then the owner has a 1 year right of redemption following the foreclosure sale.
How does a foreclosure work in Nevada?
In Nevada, mortgage foreclosures can take place “judicially”—by going to court—or “non-judicially,” by having a third party (the “trustee”) sell the property for the lender. Most mortgage foreclosures in Nevada are non-judicial foreclosures.
Also Read
- How to Stop Foreclosure: Read the blog to know how you can stop foreclosure on your property.
- How to Avoid Foreclosure: Find out the ways by which you can avoid foreclosures so that you don’t have to face the foreclosure situation.
Recommended
- Selling a Home As Is in Nevada: Read the blog to know about selling a house as is in Nevada.
- Sell my House Fast for Cash: Check out the blog to see how to sell your house fast for cash.
- Nevada Closing Costs: Read out the blog to find out how much are closing costs in Nevada.
- Who Pays Closing Costs Nevada: Find out who pays closing costs after the sale of a property in Nevada.
- How to Get Preapproved for a Mortgage: Go through the blog to know about the process of getting preapproved mortgage.
