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FinancingDeeds_of_trust_as_primary_security_instrumentMEDIUM

Sandra's Nevada home was sold at a trustee's sale after she defaulted on her deed of trust loan. The sale proceeds were $280,000, but her outstanding loan balance was $310,000, leaving a $30,000 shortfall. Sandra wants to know if she can redeem her property after the trustee's sale by paying off the full loan balance. What does Nevada law provide in this situation?

Correct Answer

B) Sandra has no statutory right to redeem her property after a non-judicial trustee's sale under a deed of trust in Nevada

Nevada law does not provide a post-sale statutory right of redemption for borrowers after a non-judicial trustee's sale under a deed of trust. Under NRS Chapter 107, once the trustee's sale is completed and the trustee's deed is delivered to the purchaser, the borrower's rights in the property are extinguished. This is one of the most important Nevada-specific distinctions: unlike judicial foreclosure states that provide redemption periods, Nevada's non-judicial foreclosure process is final upon the sale.

Answer Options
A
Sandra has a six-month redemption period after the trustee's sale to repurchase her property by paying the sale price plus interest
B
Sandra has no statutory right to redeem her property after a non-judicial trustee's sale under a deed of trust in Nevada
C
Sandra has a one-year redemption period after the trustee's sale, but only if the lender seeks a deficiency judgment
D
Sandra has a 30-day redemption period after the trustee's sale to repurchase her property by paying the outstanding loan balance

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Related Topics & Key Terms

Key Terms:

no_redemption_righttrustee_salenrs_107post_sale_rightsnon_judicial_foreclosure
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