Disclaimer: This article provides general information about Nevada law. It does not constitute legal advice. Consult an attorney for advice specific to your situation.
Detailed Answer
In Nevada, a foreclosure trustee’s sale may generate surplus funds when the sale price exceeds the total debt and costs. To recover these surplus funds, you must follow statutory procedures. Key statutes include NRS 107.080(5) and NRS 21.090.
1. Identify Where the Funds Are Held
After a nonjudicial foreclosure under a deed of trust, the trustee must pay sale proceeds to the beneficiary. If the trustee cannot determine the rightful recipient, the trustee deposits surplus funds with the county treasurer, who holds them as unclaimed property. If a court handled the sale (judicial foreclosure), the clerk of court holds the surplus.
• NRS 107.080(5): Trustee’s duties and deposit
• NRS 21.090: Petition for payment of money deposited with clerk
2. Claiming Funds Held by the County Treasurer
- Visit the Nevada State Treasurer’s Unclaimed Property website and search for your name or property.
- Complete the online claim form and submit proof of identity and entitlement (e.g., recorded deed, payoff statement, trustee’s sale notice showing sale price).
- Wait for the treasurer’s office to review and approve your claim. Processing times vary by county.
3. Filing a Petition Under NRS 21.090 (Funds Held by Clerk)
- Prepare a petition to claim surplus funds under NRS 21.090. Include:
- Description of the property (address, parcel number).
- Date and details of the foreclosure sale.
- Amount of surplus funds deposited.
- Your legal interest (e.g., borrower, junior lienholder).
- Affidavit verifying the petition’s accuracy.
- File the petition with the clerk of the district court in the county where the foreclosure occurred. Pay any filing fees.
- Serve a copy of the petition and notice of hearing on all known interested parties (e.g., junior lienholders, former owner). Follow Nevada Rules of Civil Procedure for service.
- Attend the hearing. Present evidence of your entitlement (recorded documents, trust deed, sale certificate).
- Obtain a court order awarding the surplus funds to you.
- Submit the order to the clerk. The clerk issues a check or electronic payment to you.
4. Timelines and Deadlines
You must file a petition under NRS 21.090 within one year after the trustee deposit or judicial foreclosure sale. Unclaimed funds may escheat to the State of Nevada after one year.
Helpful Hints
- Start early: Locate the trustee’s sale records and foreclosure documents immediately.
- Gather documentation: Keep recorded deeds, sale notices, payoff statements and any communication with the trustee or lender.
- Use official forms: Check the court clerk’s website for any required petition templates.
- Double-check service rules: Improper service can delay your petition or lead to dismissal.
- Monitor deadlines: Mark your calendar for the one-year filing deadline and any hearing dates.
- Consider professional help: A real estate attorney or title professional can help you prepare and file the petition correctly.
- Check unclaimed property first: If the county treasurer holds your funds, you may not have to file a court petition.