Nevada Amends Foreclosure Provisions

• June 27, 2017
• Elizabeth Dailey

Nevada has amended its provisions regarding powers of sale for residential foreclosures. These provisions are effective immediately.

Powers of sale for residential foreclosures are now subject to the following requirements, and must not be executed until:

1. The grantor, the person who holds the title of record, a beneficiary under a subordinate deed of trust, or any other person who has a subordinate lien or encumbrance on the property, where a trust agreement exists concerning an owner-occupied house, has failed to make good the deficiency in performance or payment within the time period prescribed by subsection 2;
2. The beneficiary, successor in interest, or trustee first executes and records, in the county where the property is located, both a notice of the breach and of the election to sell the property and a notarized affidavit of authority to exercise the power of sale. The affidavit must:
   1. Be executed under the penalty of perjury;
   2. Be based on the direct, personal knowledge of the affiant, or by the personal knowledge acquired by the affiant by review of business records;
   3. State the full name and business address of the current trustee or his or her personal representative or assignee, the current note holder, the current beneficiary of record, and the current servicer of the obligation;
   4. State that beneficiary, successor in interest, or trustee is in actual or constructive possession of the note or that he or she is entitled to enforce the obligation;
   5. State that the beneficiary, successor in interest, the servicer of the obligation, or an attorney representing any such person has sent to the obligor a written statement of:
      1. The amount of payment needed to cure the deficiency, avoid the exercise of the power of sale, and reinstate the terms of the underlying obligation;
      2. The amount in default;
      3. The principal amount of the obligation;
      4. The amount of accrued interest and late charges;
      5. A good faith estimate of all fees imposed in connection with the exercise of the power of sale; and
      6. Contain information, including a local or toll-free telephone number, for obtaining the most current amount due on the obligation.
   6. State the date, recordation number, and name of each assignee under each recorded assignment of the deed.

Failure to comply with these requirements will render the foreclosure sale void by any court of competent jurisdiction in the county where the sale took place.

Senate Bill 490 Full Text

Tags: Nevada, State Mortgage Compliance | Comments Off on Nevada Amends Foreclosure Provisions