Foreclosure Process – how long does it take?

Mesquite NV Foreclosures and Short sales.

It is important that the time lines are clearly understood whether you are looking to buy Mesquite foreclosure properties or selling your home in a short sale, or short pay.

A Nevada Foreclosure or REO (Real Estate Owned) property has gone though many steps before becoming a foreclosed home. It  takes a minimum of 111 days to foreclose on a Nevada property. Let me explain how this process works:

1. The foreclosure process starts with the filed Notice of Default (NOD). The notice of default is prepared and recorded with the county, here it is Clark County. It is also posted, published and mailed to all related parties. This NOD list is now public knowledge and all lien holders will be notified. If you thought you were getting a lot of junk mail before, just wait! At this point it is a good idea to contacted a Mesquite Realtor (like us) to go over options to save the home and/or your credit. There are many options  available to help people in trouble, one of these is a short sale. A short sale is when a title is transferred and the purchase price is insufficient to pay all the liens and the seller was unable to bring  sufficient funds to cover the shortfall.
2. Trustor (Home Owner) has 35 day “Right to Reinstate” period. During this 35 day period the lender MUST reinstate the loan if it is brought current including any fees or expenses. At this point to reinstate the loan, home owner would need to pay the trustees fees, back payments and allowable expenses.
3. Now begins what some call the “Second Phase of Foreclosure” or the “Redemption Period.” From day 36 to day 90 of filling the Notice of Default is where the lender MAY reinstate the loan, but is not required to. To redeem the home at this point   MAY require the full amount of the loan, back payments plus all expenses to date.
4. Next is the “Notice of Sale.” this begins approximately 10 days prior to the 3 month expiring. The trustee will begin publishing the Notice of a Trustee Sale. This Notice must be advertised and posted in three public places for 21 days.
5. Trustee Sale will be held on the exact day stated on the Notice of Trustee Sale posted. This sale takes away all the home owners interest in the home and there is no right of redemption. If there is a successful bidder at the trustee sale, they become the new owner along with al the rights of ownership. In the event the owner has not left the home they can have legal action taken to evict them.  IF there are no bidders at the Trustee Sale then the property goes back to the lender as REO.

How long does it take to foreclose on Nevada Home?

In the event that all the time lines were followed to the day it would take 111 days to foreclose on a Nevada Home. This is the 90 days or 3 month period plus the 21 days to notify of the trustee sale.

It is also important to know that a these time lines DO NOT STOP by doing a short sale. They MAY however be stalled to allow a short sale. About the only way to stop the foreclosure process is to pay all outstanding balances.

It you have any other questions about Foreclosures in Nevada or want to know your options to foreclosure, we have a Certified Foreclosure Specialist on our Mesquite Real Estate Team.