Defiency Judgments

[theonemgonzalez]

State: Nevada

My home was foreclosed on last year, and sold for much less than I paid naturally.

As far as deficiency judgments go, the research I have done and reading Nevada Revised Statutes, I believe that the time a bank has to pursue a Deficiency Judgment is 6 months, can anyone verify this?

Thanks.

[Denita]

6 months appears to be the right length of time. When was your loan originated? Here is a link to the section of the Nevada statutes dealing with deficiency judgements. It also appears that if your loan was originated after Oct 1, 2009 that there are additional limitations if your property meets certain qualifications (see section 3 below). The loans are more non-recourse loans similar to CA statutes. To see the NV statutes see the links below.

NRS: CHAPTER 40 - ACTIONS AND PROCEEDINGS IN PARTICULAR CASES CONCERNING PROPERTY (Directly from the statute)

NRS 40.455 Deficiency judgment: Award to judgment creditor or beneficiary of deed of trust; exceptions.

1. Except as otherwise provided in subsection 3, upon application of the judgment creditor or the beneficiary of the deed of trust within 6 months after the date of the foreclosure sale or the trustee’s sale held pursuant to NRS 107.080, respectively, and after the required hearing, the court shall award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust if it appears from the sheriff’s return or the recital of consideration in the trustee’s deed that there is a deficiency of the proceeds of the sale and a balance remaining due to the judgment creditor or the beneficiary of the deed of trust, respectively.

2. If the indebtedness is secured by more than one parcel of real property, more than one interest in the real property or more than one mortgage or deed of trust, the 6-month period begins to run after the date of the foreclosure sale or trustee’s sale of the last parcel or other interest in the real property securing the indebtedness, but in no event may the application be filed more than 2 years after the initial foreclosure sale or trustee’s sale.

3. If the judgment creditor or the beneficiary of the deed of trust is a financial institution, the court may not award a deficiency judgment to the judgment creditor or the beneficiary of the deed of trust, even if there is a deficiency of the proceeds of the sale and a balance remaining due the judgment creditor or beneficiary of the deed of trust, if:

(a) The real property is a single-family dwelling and the debtor or grantor was the owner of the real property at the time of the foreclosure sale or trustee’s sale;

( The debtor or grantor used the amount for which the real property was secured by the mortgage or deed of trust to purchase the real property;

© The debtor or grantor continuously occupied the real property as the debtor’s or grantor’s principal residence after securing the mortgage or deed of trust; and

(d) The debtor or grantor did not refinance the mortgage or deed of trust after securing it.

4. As used in this section, “financial institution” has the meaning ascribed to it in NRS 363A.050.

(Added to NRS by 1969, 573; A 1979, 450; 1985, 371; 1987, 1345; 2009, 1330)

If you want to read the entire section of the Nevada statutes, go here: NRS: CHAPTER 40 - ACTIONS AND PROCEEDINGS IN PARTICULAR CASES CONCERNING PROPERTY

[theonemgonzalez]

The loan was originated on 6/3/2006. The home was foreclosed in like May 2011 and sold on August 21, 2011. The records were filed and updated on the couty assessor's site on September 23, 2011.

Thanks everyone.

[Denita]

It might be worth your while to speak to a real estate attorney in NV to get accurate, updated, timely information that pertains to your exact situation. I'm not an attorney and getting advice from one for an hour is well worth the cost IMO. The statutes are a great read...but actual experience is priceless.

[legaleagle]

Usually if they sell, they have to get an appraisal. If they accept an offer below that figure, they eat the difference. That should be deducted from the deficiency. Check this out.