Current Nevada Law: Subject to Verification
This article discusses Nevada title, deed, foreclosure, property-tax and HOA law under current Nevada law as of the last reviewed date, and it is subject to change. Nevada deed-of-trust foreclosure procedures are governed primarily by NRS Chapter 107; Nevada common-interest-community (HOA) lien and foreclosure law is governed primarily by NRS Chapter 116. Statutes, deadlines, procedures and remedies change. Always verify current Nevada law and the specific facts of your situation with a qualified Nevada attorney and title professional before acting.
Why Would a Lender Agree?
A lender may determine that an approved market sale produces a preferable outcome to foreclosure. But approval is never automatic.
Example
Example
Home sells: $400,000.
Required mortgage payoff: $450,000.
Before even considering selling costs, there is a shortage.
The lender must approve the short payoff; the seller cannot simply tell escrow to send the lender $400,000.
Multiple Liens
If there is a first mortgage, a second mortgage, an HOA lien, or a tax issue, the transaction becomes more complicated.
Does Seller Get Cash?
Short-sale rules can restrict seller proceeds, though programs and circumstances vary. Do not promise a seller they will receive money unless approved.
Taxes
Potential debt forgiveness or related consequences belong with a tax professional.
Credit
Short sales can affect credit. A lender/credit professional can explain individual impact.
