David defaulted on his Nebraska deed of trust six months ago. His lender's attorney has begun the non-judicial foreclosure process. Before the trustee's sale takes place, David wants to stop the foreclosure by paying off all overdue amounts, fees, and costs. Under Nebraska's Trust Deeds Act, what is this right called?
Correct Answer
B) Right to cure, which allows David to reinstate the loan by paying all past-due amounts before the sale
Under the Nebraska Trust Deeds Act (Neb. Rev. Stat. § 76-1012), a trustor (borrower) has the right to cure a default before the trustee's sale by paying all past-due installments, late charges, and costs incurred by the beneficiary and trustee. This right to cure (also called reinstatement) stops the foreclosure and restores the loan to its original standing. It is distinct from the right of redemption, which applies after a sale in judicial foreclosure contexts.
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