What is the procedure in judicial foreclosure:
The judge will issue an order that clarifies the condition of title. It may remove all the clouds on this title, or leave some open. A lawsuit may be helpful, or even necessary, in order to clear the title after foreclosure on a second trust deed. Payment may also be required.
In a judicial foreclosure, the lender file a lawsuit in a Court and file or should have filed a lis pendens against the property and, if the borrower loses the lawsuit, the Court enters a judgment on the debt and orders it executed against the secured property through a foreclosure sale. A lis pendens should always be filed, as this is a simple work and our law office can help in filing any such lis pendens and also how to remove it. This is a convenient tool in a jurisdiction which is called notice jurisdiction. The property is then sold as part of a publicly noticed sale by the Sheriff or Constable as noted above. After a judicial sale, the borrower has one year (12 months) after the foreclosure sale to redeem the property; that is to say, the borrower (or assignee of the borrower) has one year to come back and pay the price paid by the purchaser at the foreclosure sale (plus interest and some statutory processing fees) and the borrower (or assignee) will get the property back. This is intended to discourage buyers from underbidding the property, as if they do, the borrower (or assignee or even a minority lien holder) can get it back for the same price.
Can you file Quiet Title Action in Nevada?
Another option for attempting to clear the title to your property is to file a quiet title lawsuit in Nevada state court. A quiet title lawsuit results in the issuance of a judicial order clarifying all interests in, or claims to, the property. When you file the lawsuit, you will have to serve a summons on the first mortgage lender. If the first mortgage lender does not appear in the lawsuit, that lender’s lien on the property can be removed in the quiet title judgment. Most likely, however, the first mortgage lender will appear in the lawsuit in order to protect its valuable lien right. If they show up, you can negotiate to a handsome deal. In fact, even if they show the intent, making a handsome offer can get you a better deal. Therefore, a quiet title action may be a futile effort. It is impossible to predict what a mortgage lender will do in a quiet title suit.