Nebraska Foreclosure Overview
A Nebraska foreclosure can be conducted either in court or out of court, depending on the existence of a Power of Sale clause in the mortgage or deed of trust. The foreclosure process usually takes between 4 and 6 months.
For a Nebraska Foreclosure, court foreclosures are generally for mortgages, whereas out-of-court foreclosures are for deeds of trust. Nebraska law does not require a lender to send letters to the borrower prior to beginning the foreclosure process; however, the mortgage or deed of trust may require it.
An out-of-court (non-judicial) foreclosure is usually concluded within about four months. Once a Notice of Default, (NOD), is filed with the county and delivered to the borrower, a 30-day reinstatement period occurs. During this time, the borrower can stop the foreclosure simply by paying the amount due. After this reinstatement period, a trustee sale is scheduled.
A court foreclosure, also called a judicial foreclosure, can take six months or longer. By Nebraska law, mortgages must be foreclosed this way. Once the lender has filed the appropriate court documents which includes a Notice of default and delivered notice of those court documents to the borrower, the borrower has 30 days to respond.
If the borrower fails to respond, then the court will issue a foreclosure ruling and a 20-day redemption period begins. During this period, the borrower may stop the foreclosure by paying off the amount owed. The borrower may also request a postponement which delays the sale for up to nine months. If the borrower fails to either redeem or postpone, the property is scheduled for public sale.
Notice of Sale & Auction
For a non-judicial foreclosure, the Notice of Sale is required to be published once per week for five weeks in a local newspaper. The final notice must be published at least10 but not more than 30 days before the date of sale. A trustee conducts the sale. The property is sold to the highest bidder, and the trustee issues a deed transferring ownership.
In a judicial foreclosure, the Notice of Sale must also be published once per week however, only four weeks are required. Either a court official called the Master Commissioner, or the county Sheriff will conduct the sale. Again, the property is sold to the highest bidder. Usually, it takes about 2 to 3 more weeks for a hearing to be conducted confirming the sale.
This hearing is the final chance a borrower has to redeem the property. After the sale is confirmed, a deed is issued.