Owner Occupied Homes
Hi, I’m Nevada Foreclosure Consultant and Loss Mitigation Specialist Damian Falcone. This video will be the first in a series about the foreclosure process in Nevada. In the first video we will discuss the foreclosure process in general and how it will affect you if you are in an owner-occupied home. The second video will discuss the effects of foreclosure if you are a tenant in a rented home.
First, I want to explain generally what a foreclosure is. When most people purchase a home they do not have the money to purchase it outright, so they borrow money from a lender to finance the purchase. In exchange for lending the money, the lender will hold a lien against the property. If the home-owner does not make the required payment, then the loan goes into default and the lender can take possession of the home for the purpose of selling the property to pay off the loan. This is called a foreclosure.
When a mortgage loan becomes delinquent, the home-owner goes into what is called default. Once the loan is in default the foreclosure process can begin. Default typically happens after 2-4 months of non-payment but each mortgage contract is different. The first thing that the lender must do is serve the homeowner with a Notice of Default. This gives the homeowner 35 days in which to cure the default by making any back payments and other fees. New rules in Nevada also mandate that the Notice of Default include a form to be used to elect to participate in the foreclosure mediation program. If the mediation is elected, then you will proceed with the mediation as discussed in our foreclosure mediation series. If the mediation is waived, or the homeowner fails to send in the election form within 30 days, then the lender can proceed with the foreclosure. At this point the lender must serve a notice of foreclosure sale, giving the homeowner the date and time that the property will be sold. This notice must be served on the homeowner 20 days in advance of the sale date – And again there are typically a number of months in between the Notice of Default and Notice of Foreclosure sale. Foreclosures are happening in historically high numbers.
On the sale date the property will be sold if no extension has been granted. The eviction process will begin when the bank posts a 3 day notice to quit on the property. If there is no response, the new owner will file a 5 day eviction notice with the court. If there is no response by 5pm on the 5th day, the constable will evict the resident.
In our next video we will discuss your rights when you are merely a tenant in a home that is in foreclosure.
See our full set of videos on foreclosure.