Nebraska Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Security Instruments: Mortgage
Right of Redemption Period: No Rights After Sale is Confirmed
Deficiency Judgments Allowed: No
Time Frame: 180 Days
Public Notice: Petition
Nebraska is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. In the state, a title can be secured by a document called a mortgage. If the mortgage is not paid, the borrower may go into default and may have their property foreclosed, In Nebraska, only judicial foreclosure is permitted.
The state does not have a right of redemption statute post sale. The lender may satisfy the debt on their property at any time before the sale is confirmed. Lenders are not allowed to pursue a deficiency judgment. Meaning if the property sells for less than what was owed on the mortgage, the borrower will not be held responsible for the remaining balance.
Types of Foreclosures Allowed in Nebraska
Nebraska statute allows for only judicial foreclosure on defaulted property. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The lender sues the defaulted borrower to initiate the foreclosure process. The lawsuit is filed in the county where the property is located. The county court will then issue a judgment of foreclosure stating the delinquent amount and will give the borrower a short period of time to satisfy the loan. If the borrower cannot pay off the remaining balance on their mortgage, the court will issue an order of sale and the property will be put up for sale. Nevada foreclosure law is unique in the sense that a court may order only part of a property to be sold.
Nebraska judicial foreclosure guidelines are as follows:
1. The borrower can delay the order of sale up to nine (9) months by filing a written request for delay with the clerk of the court within twenty (20) days after the judgment of foreclosure has been issued. If the borrower does not attempt to delay the sale, the order of sale will be issued twenty (20) days after the foreclosure judgment.
2. While the suit and order of sale are pending, the borrower may pay off their default and stop foreclosure on their home. If the borrower were to default again, the judgment of foreclosure and order of sale remain may be enforced again.
3. If the property is to be sold, the county sheriff must post the notice of sale, containing the time and place of the sale, on the door of the county courthouse. A copy of the notice must also be posted in five (5) other public places in the county. In addition, the notice of sale must be published every week for four (4) consecutive weeks in a newspaper that circulates where the property is located.
4. The sale must be confirmed by the court. Once the sale is confirmed, the borrower has no right of redemption. Nebraska foreclosure law also prohibits deficiency judgments.
Working with a Foreclosure Lawyer in Nebraska
These difficult economic times have led many borrowers to incur mountains of financial debt. Job loss and pay cuts have contributed to many mortgagors falling behind on their payments and have led them to face foreclosure on their homes. Although the idea of losing one’s property is alarming, there is help available in Nebraska right now for all mortgagors. If you are behind on your mortgage or have already received a notice of foreclosure, speak to a skilled foreclosure attorney in Nebraska to fight for your rights and prevent the repossession of your property.
Foreclosure lawyers do whatever it takes to make sure you don’t lost your property. They will review your financial situation and try to work out a plan of action in lieu of foreclosure that your lender can agree to. Your Nebraska foreclosure lawyer may suggest mortgage modification, refinancing or even a temporary halt in payments. Regardless of the plan, rest assured that your paralegal won’t rest until your case ends in your favor.
Regardless of your reason for defaulting, you have rights as a homeowner in Nebraska. Speak to a leading team of Nebraska foreclosure attorneys to discuss your options and prevent your home from being seized.