Paladin Legal Center Loan Modification Attorneys

Delinquency Period
Trustor (borrower) fails to make payments on a note secured by Deed of Trust. Several special notices may be sent to the borrower by the lender (Beneficiary). Beneficiary requests that the trustee file a Notice of Default and Election to Sell.

Day 1
Notice of Default and Election to Sell filed with county recorder. Copies mailed to appropriate parties. Foreclosure process has begun.

35 Days After NOD Date
Borrower or secondary lender may pay off delinquent amount and reinstate the loan and stop the foreclosure.

After 3 months
Trustee sets sale date and time.

25 Days Before Sale
Notice of Sale must be sent to IRS, if applicable.

21 Days Before Sale
Notice of Sale posted at three public places and mailed to appropriate parties. Sale must also be published three consecutive weeks in appropriate adjudicated newspaper.

Sale Date
Trustee’s Sale is held. Property is sold to the highest bidder. Trustee’s deed is given to buyer. The One-Action Rule (NRS 40.430) Related to Judicial Foreclosures:

There is but one judicial action in which the sale of the security is first accomplished, and if any deficiency results in satisfying the debt owed, judgment for the deficient sum is rendered in the same action, which, when docketed, permits execution to issue. The purpose of the one-action rule is to compel the creditor to exhaust the secured property before having recourse to the general assets of the debtor. The one-action rule was enacted to prevent double recovery by creditors, not to completely deny recovery of a legal debt. The purpose of the rule is to relieve debtors of harassment by creditors seeking to recover both possession of the property (securing the debt) and a full money judgment on the debt. In many jurisdictions, a mortgage foreclosure must first be commenced by a suit in the equity division of the courts, and then, after foreclosure and sale, an action for a deficiency may be commenced in the law division; this section combines the procedure into one action. However, the beneficiary of a trust deed has a choice of remedies. Where a default has occurred, a beneficiary, under a deed of trust, can select the Judicial process for foreclosure pursuant to NRS 40.430, or the procedure under NRS 107, of foreclosure by a trustee’s sale and then bring an action on the promissory note for any deficiency which may occur.

Matters pertaining directly to foreclosure are set forth in NRS 107.080 to 107.100 of the Nevada Revised Statutes. Information deemed reliable but not guaranteed.