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

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?

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Attorney answers 3


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 you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.



Mortgage Debt Relief Act of 2007: If Wells Fargo reported both amounts of the 80/20 loan (123,500 was FMV/sale price and I purchased for 280,000) on a 1099-A does that mean they can't pursue legal action as they have already "forgiven" the debt? Are these two seperate issues? I recieved a1099-A for both amounts in 2008 and filed insolvent that year on my tax return. Seems like double Jeopardy if they report it as income on taxes then sue for the whole amount plus interest later. I appreciate the help with this situation as it seems too late in the game for settlement but too early to try can clear up the credit report as it seems they still have time to seek legal action.

William C. Devine II

William C. Devine II


A 1099-A is not a write-off of debt. A 1099-A is the lender reporting to the IRS that you have abandoned the property, done a deed-in-lieu of the property, or short-sold the property and that the lender is subtracting the amount of the home price or value from their loan and that they still consider the deficiency an asset. A 1099-C is what you're thinking about, which is a forgiveness of the debt and expensing the loss over to you. If they issued you a 1099-A, then they can still sue. If they issue you a 1099-C then they're done with you. ---William


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!


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.

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