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Ok, you get a notice of default either by having the letter taped to your front door, or by certified letter.  NOW WHAT?!  First of all, please understand that these are extraordinary times and many people are hurting and struggling to stay in their homes.   71% of all of the home owners in Las Vegas are currently underwater, and with 14-15% unemployment many people are unable to pay their mortgages.  With Loan Modifications not producing great results for home owners, some are getting frustrated and sticking their head in the sand.  You have options.  Did you know that Nevada has a mandatory mediation program to deal with these pain in the butt banks?  YES.  You can force the bank to send a representative who can make a decision on the banks behalf in order to get something accomplished. Here's the catch, and I'm going to make this very clear:

In order to participate in the manditory mediation program in Nevada, you MUST file your mediation paperwork with in 30 days of the first notice of default.  30 days.  Please, please, please open your mail and read it.   This is an opportunity for you to stay in your home! If you have decided not to keep the home, this process can facilitate a short sale. The bank can not foreclose on your property until this mediation has taken place. The average mediation is taking 90-120 to set up.

There are legal documents required to file for mediation, so I would recommend speaking to an attorney to help you with the mediation process.  I have a few lawyers I send my clients to, and if you need a recommendation please contact me directly at 1-866-589-1646.

So, what happens after the notice of default?  The notice of default letter is the first step of the foreclosure process in Nevada. Here are the step of Foreclosure in Nevada:

1. Notice of Default starts the foreclosure process - it is prepared, recorded, mailed, posted, published and a copy sent to all parties (owner, all lenders, IRS, local, state, and federal tax agencies) who have an interest in the property.
2. Reinstatement Period (month 1) - starts on the first day the notice of default is recorded.  This is a 35 day period in which the homeowner can reinstate the loan by making any back payments, foreclosure fees and other allowable expenses.
3. Redemption Period (months 2-3) - starts on day 36 from the recorded date of the Notice of Default.  Now the homeowner is now responsible for paying the remaining loan balance along with all foreclosure fees and other allowable expenses.  It should also be noted that approximately 10 days before the end of the redemption period, the trustee will notify the lender for permission to prepare the Notice of Trustee Sale for publication.
4. Publication Period (month 4) means the Notice of Sale must be published once a week for three consecutive weeks (21 days) prior to the Trustee Sale.
5. Trustee Sale (month 5 ) is the final step in the foreclosure process and it is extremely important to remember the homeowner has no right of redemption after the sale is finalized.  If there is a successful bidder at the sale, the new owner will purchase the property in "as is" condition with no warranties.  If there are no bidders at the sale, the lender becomes the sole owner as an REO (Real Estate Owned).
6. Eviction (month 6) process starts after the Trustee Sale is finalized.  The eviction process is initiated by posting a 3 day Notice to Quit on the property.  If there is no response, the new owner will file a 5 day Eviction Notice with the court.  If there is no response by 5pm on the 5th day, the Constable will evict the resident.

If you are looking to avoid foreclosure on your record, you can also do a short sale.  In a short sale, you basically ask the bank to take a loss on the property for the amount you owe.  This process can be very quick with certain banks and slow as molasses.   My team has had great success in closing our short sales. In fact we just closed and EMC short sale and got an approval in 5 weeks! The bank released the seller completely from the debt owed to him, and he was able to move on with his life and start rebuilding his credit.   A short sale is not for everyone, and it's absolutely essential that you understand the tax and legal ramifications of a short sale.  I ALWAYS tell my clients to consult with an attorney and an accountant to get their professional advice.

If you would like a free confidential short sale consultation, please call Felipe Crook directly at 1-866-589-1646 with Prudential Americana Group Realtors.

Felipe Crook

Prudential Americana Group Realtors

Las Vegas NV 89117