What is the statue of limitations on a forclosure in Nevada?

Asked almost 2 years ago - North Las Vegas, NV

I purchased a home in N. Las Vegas Nevada in 07/2005. It was Foreclosed on in 07/2008. My credit report says i still owe $54,000. I did have an 80/20 loan with a variable rate. This was at the time of the real estate "bubble" so the terms included a $20,000 penalty if sold within two years and I was a first time inexperienced home buyer who didn't know what anything about buying a home. As soon as 2 years came and a chance to refinance the value of house decreased and the same lender would not refinance (They said the value of the property was too low for new terms) so the payment doubled and the value never increased, hence the foreclosure. Am I on the hook for $54,000 for the second mortgage or is there something I can do? When does the time end for the bank to try and collect?

Attorney answers (3)

  1. William C. Devine II

    Contributor Level 13

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    Answered . If your 2nd mortgage company received nothing from the trustee sale, then it would have six years from the date of the trustee sale to file a lawsuit against you. If they received something from the trustee sale, then they have six months from the date of the trustee sale to file an application for a deficiency judgment.

    If the sale occurred during July 2008, then presuming the house was worth less than you owed on the 80% first mortgage, then it appears the lender could still file a lawsuit for the $54k second mortgage until July 2014, after which they wouldn't be able to file a lawsuit (unless you've made payments after the foreclosure sale which resets the statute of limitations.)

    All of the above are contingent on the information in your post being accurate.

    Best Regards,
    William Devine, II

    I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until... more
  2. Dorothy G Bunce

    Pro

    Contributor Level 20

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    Answered . Your timing has been unfortunate, to put it mildly. The second mortgage company has 6 years to sue you from the time of the foreclosure or last payment, whichever occurred last. The law changed in 2011 to only 6 months, but the change in the law won't help you. Hope this perspective helps!

  3. Taylor L. Randolph

    Contributor Level 4

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    Lawyer agrees

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    Answered . Both of the answers appear correct, but you should consider looking at debt settlement. Many of the seconds have been sold for small amount of money and you may be able to settle them. Consider it.

Related Topics

Property foreclosure

If you miss too many mortgage payments, your lender can start foreclosure proceedings to take ownership of the property, but it has to follow your state's laws.

Buying real estate with a home mortgage

A home mortgage is a loan to buy a home, where the home is the collateral. There are many different types, and the right one for you depends on your situation.

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