Mortgage deficiencies in Nevada
In Nevada, the law with respect to mortgage deficiency judgments changed on October 1, 2009.
In a nutshell, after October 1, 2009, if a financial institution makes a loan to a borrower who continuously occupies the property as a primary residence, the lender may not later pursue a foreclosed borrower to recover a deficiency. The financial institution’s recovery is limited to the property. See NRS 40.455. In legal terms, Nevada has joined a number of states that are considered non-recourse (i.e., the lender may only foreclose against the property and may not obtain a deficiency judgment) states with respect to mortgage deficiencies.
Prior to October 1, 2009, the financial institution had six (6) months to obtain a deficiency.
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