Foreclosure is the legal process used by a lender to force the sale of real property used as security for a mortgage loan or deed of trust in the event of default.
Most Common:
Judicial Foreclosure
Non-Judicial Foreclosure
Judicial foreclosure involves the lender filing a lawsuit in order to obtain a court order to foreclosure. The court must approve the sale of the home. This can be a lengthy process with additional time needed to process through the court system. After Judicial Foreclosure, the borrower has up to one year to redeem the property (known as the Right of Redemption time frame).
Non-judicial foreclosure does not require court intervention or approval. This is used when the Deed of Trust has a Power of Sale clause, in which the borrower agrees to the sale of the property, if in default. Time frames will depend upon the state statutes. In Nevada, the times begin upon the Notice of Default being filed (typically filed after the 2nd or 3rd missed payment). Once the Notice of Default (NOD) has been filed, the foreclosure process is approximately 120 days and there is no Right of Redemption.
Although Nevada has both types of foreclosure, Non-judicial foreclosure or a Trustee Deed is most common due to the power of sale clause. If you have questions on foreclosure and seller options, please contact Team Carver.
