Maria purchased a home in Las Vegas and financed it with a loan secured by a deed of trust. She later defaulted on her loan payments. The lender wants to foreclose. Which type of foreclosure process does Nevada law primarily provide for in this situation?
Correct Answer
C) Non-judicial foreclosure, allowing the trustee to sell the property through a trustee's sale without court involvement
Nevada law under NRS Chapter 107 primarily provides for non-judicial foreclosure (also called a trustee's sale) when a deed of trust is used as the security instrument. Because the trustee holds bare legal title, the trustee can conduct a public auction sale without filing a lawsuit or obtaining a court order, making the process faster and less expensive than judicial foreclosure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
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