Preparing a Jointly Owned Nevada Property for Sale Before a Foreclosure Hearing

Disclaimer: This article provides general information only. It does not constitute legal advice. Consult an attorney to address your specific situation.

Detailed Answer

When co-owners learn a lender has scheduled a foreclosure hearing, prompt, coordinated action is vital. In Nevada, you can sell jointly owned property before the foreclosure sale if all titleholders agree and follow state requirements. Below are key steps:

1. Confirm Ownership and Mortgage Status

Obtain a copy of the grant deed or deed of trust from the county recorder’s office to verify all co-owners’ names and ownership shares.
Request a current payoff statement from the lender. This shows the exact amount needed to fully satisfy the mortgage and any fees. Nevada law requires lenders to respond within 10 days to a payoff demand under NRS 107.085 (NRS 107.085).

2. Coordinate with Co-Owners

Hold a meeting (in person or virtual) so all co-owners agree on listing price, timeline and use of proceeds.
Document agreements in writing. Include signatures of all titleholders to avoid disputes.

3. List as a Pre-Foreclosure Sale or Short Sale

Hire a real estate agent experienced with pre-foreclosure or short sales. They can prepare a Broker Price Opinion (BPO) or Comparative Market Analysis to set a competitive price.
If the property value is less than the mortgage balance, negotiate a short sale with the lender. Nevada lenders often require a hardship letter and a completed short sale package.

4. Address Liens and Payoff

Obtain title clearance. Resolve any junior liens or judgments before closing to prevent delays.
At closing, use sale proceeds to pay off the mortgage. The title company will disburse funds directly to the lender, satisfying the deed of trust.

5. File for Partition Sale (if Co-Owners Disagree)

If one co-owner refuses to cooperate, any co-owner can seek a court-ordered partition sale under NRS 40.430. The court may appoint a commissioner to sell the property and divide net proceeds.

6. Close Before the Foreclosure Date

Nevada’s nonjudicial foreclosure process requires at least 90 days’ notice after default under NRS 107.080. Aim to complete your sale at least 10 business days before the trustee’s sale date. This gap gives time to record the reconveyance deed and stop the foreclosure.

Helpful Hints

Work quickly: Foreclosure timelines move fast once notice is recorded.
Keep clear records: Save emails, letters and payoff statements in one folder.
Communicate: Regular check-ins with co-owners reduce misunderstandings.
Consult professionals: Real estate agents, title officers and attorneys help navigate complex steps.
Understand costs: Factor in agent commissions, closing fees and any lien payoffs.
Explore alternatives: Loan modifications or deeds in lieu of foreclosure may offer relief.