When most people purchase real property, they do not have enough money to simply purchase the property outright. In order to make the purchase, they are required to borrow money from a lender. In exchange for lending the money, the lender will hold a lien against the property. If the borrower does not make the required payments, then the loan goes into default and the lender can exercise the lien against the property, in order to take legal possession of the property for the purpose of selling the property to pay off the borrower’s loan. This process is called mortgage foreclosure.
The first step in the mortgage foreclosure process is that the loan becomes delinquent because the borrower has not made a required payment or payments. When the loan becomes delinquent, the borrower goes into what is called default. Often, the loan will remain in default status for ninety days while the lender contacts the borrower to inform him or her of the situation and give the borrower an opportunity to pay the overdue balance.
Once a mortgage is in default, the lender may then begin the foreclosure process by filing a Notice of Default. After a specified period of time without resolution from the buyer and lender the lien holder will send out the notice of sale. This means that the lender will file documents in court or with the county recorder, depending on the state, stating an intention to foreclose on the mortgage. There are a number of steps before this process can be completed, and the typical time period that elapses from the filing of foreclosure until sale of the property by the sheriff is anywhere from 120 days to 12 months.
In 2009, AB 149 was passed to offer foreclosure mediation to owner occupied properties. The goal of the bill was to get homeowners and lenders together to negotiate an agreement on the loan through the mediation process. For more information on your right to mediation go to www.nevadajudiciary.us/.
Important Notice: Renown Real Estate Services is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.Renown Real Estate Services and licensee Richard Beach are not engaged in the practice of law, legal advice, or tax advice. Renown Real Estate Services and licensee Richard Beach do not attest to the accuracy of this information and assume no responsibility for the actions of the recipients. The pre-ceeding is for informational purposes only and the recipient is urged to seek professional legal and tax counsel.
