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If you are behind on your mortgage, or you have gotten into excessive debt trying to stay current, judicial and non-judicial foreclosure attorney Taylor Randolph can help. At Randolph Law Firm, we utilize several methods to help our Las Vegas clients avoid foreclosure. We understand judicial and non-judicial foreclosure actions, including court-ordered foreclosure, that some lenders may choose to use increasingly in the future. Contact us now for a free consultation about your situation.
Buying a home typically means that the buyer has to take out a mortgage to pay for the property. Aside from a down payment, the homeowner has to repay the lender what is owed in monthly agreed-upon installments. If too many of these payments are missed, the borrower may have to go through the foreclosure process, which allows the lender to sell the home through what is known as the sale clause to get back the money that is owed.
Many Americans express worry that their house might be foreclosed on in two months, even if they are not behind on payments. In Nevada, 67.5% of homeowners are currently paying off their mortgage loan. The foreclosure rates have risen over the last year, and in the first half of 2022 over two thousand Nevada residents entered the foreclosure process. A judicial and non-judicial foreclosure lawyer can help homeowners retain their property and come to an agreement with the mortgage lender.
Foreclosure is the process by which a lender takes back the collateral on a loan (the house) if the debt is not serviced by the borrower. This process has multiple stages that are defined by specific laws that vary from state to state. In some states, foreclosures have to go through the court system — these are called judicial foreclosures — while in other states, a lender does not need a judge’s approval to foreclose on a property. In Nevada, foreclosure is currently a non-judicial process, but foreclosing on a property usually takes several months to a couple of years.
Many homeowners who are late on their payments are afraid that the lender will remove them from their homes and repossess the property. In reality, your house is yours unless and until a foreclosure process has fully run its course. That process can take years.
Before a house can be sold in a foreclosure sale, the lender must go through all the proper notification steps, as well as offer the borrower options to get their payments back on track. These options are what is known as loss mitigation, and all lenders are required to notify the borrower under federal law.
To help Nevada homes from foreclosing, there are options that the borrower has to get his or her payments back on track prior to a foreclosure sale. Picking the correct type of loss mitigation is important for the homeowner, as each version offers different timeframes to return payments to current status. Once the borrower picks a loss mitigation option, the lender has up to 30 days to accept the offer or deny it.
The types of loss mitigation that a borrower who is behind on payments can choose from include:
Even though the lender does legally have to offer loss mitigation options to the borrower, this does not mean that the two parties will come to an agreement. It is better to contact the lender as soon as any notices have been received to see if an agreement can be reached, prior to the next steps of the foreclosure process. Any correspondence at this stage is not only a notice, so should be read carefully.
To help protect homeowners’ rights, Nevada has the Nevada Homeowner’s Bill of Rights (NHBR), which helps ensure that homeowners are not foreclosed on through illegal practices. This helps to make the foreclosure process clear to borrowers, and allows them the opportunity to get back on track with their payments before the house is sold through auction.
The NHBR also requires that the lender send all the applicable notices to the homeowner and wait the designated timeframes before proceeding. An attorney can advise if all foreclosure laws have been followed, as well as explain the required timeframe for each step of the process.
Some protections that are offered to homeowners under the NHBR include:
The main difference between a judicial foreclosure and a non-judicial foreclosure is that a judicial foreclosure goes through the court system, and a non-judicial foreclosure does not. This will also provide two different timelines for a foreclosure sale to take place.
During the judicial foreclosure process, the two parties will be required to go before a judge to go over the defaulted payments and the circumstances for missed payments. The judge will then rule in favor of the borrower or the lender. If the ruling is in favor of the lender, a judgment of foreclosure will be entered, the sale will proceed, and a deficiency judgment may be entered for additional fees.
A judicial foreclosure can take as long as a year to complete, and the borrower may be able to reach a settlement agreement with the lender prior to the hearing.
The requirements for a non-judicial foreclosure vary from state to state. This process takes less time to conclude. A third party trustee is in charge of sending the required notices and negotiating any loan modifications or other loss mitigation offers.
It is important to know your state’s requirements for a non-judicial foreclosure. A lawyer can help make sure that all the proper notices and timeframes for offers have been observed prior to a foreclosure sale.
If you are unable to come to an agreement through the loss mitigation options, and the foreclosure has proceeded, the last step is the sale of the property. This can take place no sooner than three months after the notice of default has been entered.
Once the property has been sold through the foreclosure sale, the new buyer holds the title. The new owner then has to wait three days before he or she can send you a notice of quit, which asks you to vacate the property. If you remain in the home, the new owner can serve you with a summons and compliant through the court system to evict you from the property.
The new homeowner is not allowed to come onto the property or change any of the existing locks until this complaint has been served.
If the sale of the home exceeded the amount owed, you might get some money out of the sale. This will be determined by a few factors, such as the remaining balance that was owed, as well as the appraised value of the home.
Lenders are allowed to charge late fees, as well as some additional fees during the foreclose process. This can include a fee to have the house inspected to see if the property has been abandoned. Property inspections may be done only once, or once a month during the foreclosure process, and each inspection will add a fee. Any fees are added to the amount owed, which come out of proceeds from the sale.
If you have missed mortgage payments, and you are worried that you will have to go through foreclosure, you should contact a lawyer. A Las Vegas attorney experienced in foreclosure can review your case, help navigate either a judicial or non-judicial foreclosure, and help you keep your family’s home.
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