The Nebraska Foreclosure Process
If you are navigating your house through foreclosure, understanding the foreclosure process in Nebraska is detrimental in order for you to be aware of what’s actually going on.
In this post, I will try my best to explain the process to you …
Understanding the Foreclosure Process in Ne
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower falls back and defaults on the payments.
The foreclosure process can be weary. Although it may seem like the world is coming down on you, keep in mind that it’s not the end of it.
When you educate yourself on how foreclosure in Ne works, it secures you with the knowledge to navigate it best and come out in the best position possible.
The Basic Stages of A Foreclosure
The foreclosure process works under a few important stages.
Foreclosure works differently in different states around the country.
The two ways that states use to foreclose on a property are judicial sale or power of sale.
Connect with us by calling (402)-218-1996 or through our contact page to have us walk you through the specific foreclosure process here locally in Omaha.
Whichever the process may be, a foreclosure usually doesn’t go to court until 3-6 months of missed payments. Usually, but not always, a lender will send you frequent notices that you are in default – overdue or behind in your payment.
The Judicial Foreclosure:
- Your mortgage lender files suit in the court system.
- You’ll receive a letter from the court asking you for a payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure, which sometimes can be extended.
- If you fail to pay during the payment period, a judgment will be administered and the lender will request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale(Non-Judicial):
- The mortgage lender serves you with papers demanding payment. The courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Under this type of foreclosure, anyone who has an interest in the property must be notified.
For example, any contractors(mechanics liens) or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After everything is settled, the loan amount is paid off with the sale proceeds.
At times, proceeds from the sale might not be enough to pay off the loan, and a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the home at the time of sale, whilst different states will permit the full loan amount to be assessed against the borrower
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at FastFlow Home Buyers LLC to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Omaha, we can help you.
We buy houses in Omaha Ne like yours from people who need to sell fast.
Give us a call anytime (402)-218-1996 or
fill out the form on this website today! >>
Another Foreclosure Resource For Omaha Ne HomeOwners: