Foreclosure & Alternatives Law
The foreclosure proceedings can be rather intimidating, especially when working with a large bank or a mortgage lender. However, no matter the size of these corporations, you still have your own personal rights as a homeowner, and these have to be respected. On top of that, the laws and regulations in Nevada set up a distinct order in which steps have to be taken for a foreclosure to go through. You should know these steps so that you can ensure that they are followed the entire time.
If you want to do everything in your power to keep the house -— perhaps the defaults came while you were out of work, for instance, and you have now been hired to a new position -— then you can reinstate the loan. Typically, the lender will need you to pay off the back payments, and you will also have to cover fees or fines that may have been added. Even if the foreclosure lawsuit has been started, you are legally given the right to reinstate your loan right down to five days prior to the sale of the home.
Nevada law also ensures that you know the foreclosure is coming due to the many notices that must be given to you by the lender. First, you have to get a notice that you defaulted on the loan three months in advance. At the same time, you have to get another notice telling you about your right to mediation and a note telling you what right you have to sell the property yourself. Additionally, a notice must arrive saying that you could have the home foreclosed upon, and another must be provided telling you of the impending sale -— this notice of sale must arrive three weeks before that sale.
For a high-value mortgage, the law gives you even more advance notice. To qualify, though, your purchase has to be subject to the Home Ownership and Equity Protection Act (HOEPA). You also must have bought it after the last day of September in 2003. If so, rather than a three-week notice of sale, you get a 60-day notice of sale.
Members of the federal military may get protections under the Servicemembers Civil Relief Act; this federal ruling is in place to keep a foreclosure from happening until active members in different branches of the armed forced are returned home from tours of duty. Local military members -— such as members of the National Guard -— are not given any additional protection under Nevada law. In other states, local laws are sometimes created to extend the SCRA to the local militia.
If your home is foreclosed upon, you must be provided with at least three days to leave the property. After those three days, however, the lender —- or the new owner —- can ask to have you evicted.
Now that you know the steps that have to be followed, you should know that the violation of these steps can be used in defending your home. If you do not receive the proper notices at the proper times, for example, that can play a significant role. Another thing to consider is your overall financial situation and your eligibility for bankruptcy. While declaring for bankruptcy will not take the foreclosure lawsuit off of the books, it can both put it on hold and offer you a way to get all of your debt in order so that you can once again pay off the mortgage on time, thereby reinstating your loan. Be sure that you know about all of your options moving forward.