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How Does the Foreclosure Process Work? Timeline Explained

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The general timeframe for the foreclosure process is approximately 120 days. It starts with the lender filing a Default and Election to Sell with the Clark County Court System. That is essentially the lender saying they are choosing to exercise their right to sell the property at auction as outlined in your loan agreement. Fortunately, this doesn’t mean you’re out of options. We always recommend speaking with an attorney that specializes in foreclosure proceedings. We will gladly have a licensed attorney reach out to you to answer any questions about your specific situation at NO COST TO YOU. Just fill out the “Contact Us” form located throughout the website and we will reach out within 24 hours.

What are my options?

Option 1 – File for Foreclosure Mediation
Foreclosure mediation is meant to help the homeowner and lender come to an agreement to avoid foreclosure. This process was established to help homeowners in Nevada negotiate a loan modification with the lender to avoid foreclosure. They may decide to adjust your monthly payments upon entering into an agreement with the lender. You can file on your own, or you can use an attorney. We recommend the latter if you aren’t familiar with filing legal documents and serving notices to lenders. You only receive 30 days to file for mediation with the state.  For more information about foreclosure mediation check out our previous article here https://dwnevada.com/what-is-foreclosure-mediation-and-how-do-i-apply-for-it-in-nevada/

Option 2 – Sell Your House
While we understand this may not be your preferred option, it may be what’s best for you and your family if you have equity in the property and can’t receive a loan modification. At this point, you are still able to sell the house to pay the remaining balance of loan and keep the rest for yourself.

Option 3- Ask the lender for a loan modification WITHOUT foreclosure mediation.
While this is an option, the success rate of receiving a loan modification is much lower. While lenders would never admit to it, we’ve seen them draw this process out by requesting endless documents, having a slow response time, and generally trying to make it as difficult as possible, just to end up denying the loan modification. The result is you have significantly less time to try and sell the property yourself. Keep in mind that your auction date will typically be 120 days from the day the Notice of Default and Election to Sell is filed. The more time you have to sell the house, the better the outcome.

Option 4 – Request a Short Sale
A short sale is only an option if you owe more than what the house is worth. Occasionally, lenders will allow you to sell the house with their approval of the price it’s sold for. For example if you owed $450,000 but your house was only worth $400,000 they could agree to consider the debt paid-in-full for the proceeds from the sale of the house. While you won’t receive any proceeds from the sale, it DOES make your credit easier to repair later compared to a foreclosure.
If you’d like our opinion on what the best option for you is, don’t hesitate to give us a call with any questions about how the process works.  We do this for a living and we’d love to help you!

For a visual representation of the foreclosure timeline in Nevada, please click the link below:
https://www.titleadvantage.com/mdocs/Nevada%20Foreclosure%20Laws.pdf

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