You may own property by reaffirming a debt, but only if the individual creditor allows it. However, you are promising to pay to pay the creditor by continuing to stick with the original payment plans and not missing anything. That is called reaffirmation. However, if you later default, the creditor can come and repossess the property and sue you for the deficiency.
Stopping a Nevada Mortgage Foreclosure Using Chapter 13
Mortgage foreclosure in Nevada can be stopped in only two ways. The mortgage lender can voluntarily stop the foreclosure proceeding, or you can file a Chapter 13 bankruptcy. The third choice is loan modification but it is a voluntary act, and you had tried with your lender for many months and it did not work.
Generally, you will find that mortgage companies will not voluntarily stop foreclosure proceedings. Under Nevada law, a mortgage company can start foreclosure proceedings once you are placed into default status because of missed payments. Usually, mortgage companies will wait until you are two or three months behind before they put you into default status and accelerate the mortgage. Acceleration means that the mortgage company has declared the entire payoff balance due and payable.
Because mortgage companies are subject to federal and state banking regulations, changing the status of your account from delinquent and accelerated back to “current” is complicated and time consuming. Further, a “delinquent and accelerated” mortgage account will be referred to a foreclosure law firm that has its own case management process. Once the foreclosure process starts, our experience has been that most mortgage companies are not set up to arrange side deals with consumers who promise to cure delinquencies on a case by case basis. Truthfully, they would refer you to the foreclosure attorney whose rules and prices are rigid and they do not bend and single handedly determined to continue foreclosure against you.
You May Lose Your House to Foreclosure in Las Vegas as early as 35 Days After Foreclosure Notice is Published.
Nevada allows non-judicial foreclosures, which means that your mortgage company and its foreclosure lawyer do not have to go before a state court judge to obtain permission to take title to your house through a foreclosure. Instead, they need only advertise a notice of the pending foreclosure sale of your property three times in a newspaper published in the county where the foreclosure sale is to be made, with the first publication at least twenty (20) days prior to the sale.
If you are living in the house being foreclosed upon, a notice of the proposed sale must be served upon at least 20 days prior to the proposed sale. Further, many notices would be send to each spouse, tenant, and at your current address. This foreclosure notice serves to give you official notice of your right to redeem the property by paying the entire balance due. This notice also advises you that your property will be sold on the courthouse steps within a few weeks of the date on the foreclosure notice.
Once your account has been referred to a foreclosure law firm, therefore, Chapter 13 bankruptcy remains your most realistic option for saving your home. Chapter 13 will stop any pending foreclosure up until literally the minute before your property is sold on the courthouse steps. It does not matter that the auctioneer may not have actual notice of your Chapter 13 filing. Unless the bankruptcy court has ruled to limit the applicability of the bankruptcy stay in your case, your Chapter 13 filing will invalidate any foreclosure sale.
You should know that:
-Reaffirmation a debt is a serious financial decision. The law requires you to take certain steps to show and demonstrate that you understand the implications and financial obligations of reaffirmation is in your best interests. If these steps are not completed, the reaffirmation agreement is not effective, even though you have signed it.
– You may rescind your reaffirmation agreement anytime before the bankruptcy court enters a discharge order, or before the expiration of the 60-day period that begins on the date your reaffirmation is filed with the court.
-Remember, reaffirmation papers are very long and complex papers.
– Reaffirmation of debts other than home mortgage must be approved by the debtor’s lawyer or the court.