After the Notice of Default was recorded on his Nevada property, Kevin made no payments and did not cure the default. The lender then recorded a Notice of Trustee's Sale, scheduling the sale for 25 days later. Kevin now wants to reinstate his loan by paying all overdue amounts and costs. Under NRS Chapter 107, is Kevin still entitled to reinstate the loan at this point?
Correct Answer
B) Yes, Kevin can reinstate the loan up to five business days before the scheduled trustee's sale date
Under NRS 107.080, a borrower retains the right to reinstate a defaulted deed of trust loan (by paying all overdue amounts, late charges, and foreclosure costs) up until five business days before the scheduled trustee's sale date. Since the sale is scheduled 25 days away, Kevin is still within the reinstatement window and may cure the default. However, once the sale is within five business days, the right to reinstate typically terminates.
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Related Topics & Key Terms
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Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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