In order to make informed decisions, you need to know where you currently are in the foreclosure timeline. We’ll cover the 5 major milestones for Nevada on this timeline and provide options for you at each step.
Step 1: Missed payment
You missed a payment. It happens. Maybe you had a medical emergency or other unexpected expense. Your the lender will call or mail a notice requesting immediate payment. This is usually 30-days after the usual payment due date. Public records may post your home on local pre-foreclosure lists.
Step 2: Missed 2nd payment
If you didn’t make up your first missed payment, and subsequently missed a second payment, your lender will step up their efforts to make contact with you. You are now over 60-days past due and behind on two payments. You may also owe additional late payment fees or penalties. Your home stays listed with other available pre-foreclosures.
Step 3: Missed 3rd Payment (90 Days in Arrears)
At this point, your lender will send you a “lis pendens,” aka a formal notice of default to the homeowner. Typically you’ll have 30 days to bring the account current, plus all applicable fees. This is the most critical phase or the point of no return.
Step 4: Missed 4th payment – Start of Foreclosure
This is the point where the lender will call the loan due in full if you have not contacted them to make arrangements to bring the loan current. The original terms of the loan are void. The lender initiates legal action to end the pre-foreclosure stage and repossess the home. Your home now moves from the list of the pre-foreclosed home to the foreclosed property list.
Step 5: Real estate foreclosure auction
After the date specified by the lender, your property is put up for sale at a foreclosure auction run by the sheriff or a local public trustee. All parties can submit a bid on the property and the auction winner becomes the new owner, pending some final confirmations and the possible redemption period.
Step 6: Redemption Period
In some cases, you may still retain the home after the auction. A redemption period may be available to allow this to happen. The redemption period would give you a final deadline to pay all the outstanding payments, fines, fees, and penalties and redeem the property once again. This very rarely happens, one your house has been foreclosed, that’s about it.