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Nebraska Foreclosure Law
Both court and out-of-court foreclosures are available in
Nebraska. The typical foreclosure process can last 4-6 months.
Pre-foreclosure Period
In most cases, court foreclosures are for mortgages, whereas
out-of-court foreclosures are for deeds of trust. State law does
not require a lender to send letters to the borrower prior to
beginning the foreclosure process, but the mortgage or deed of
trust may require it. An out-of-court foreclosure is usually
concluded within four months. Once a notice of default is filed
and delivered to the borrower, a 30-day reinstatement period
occurs during which the borrower can stop the foreclosure
process by paying the amount due. After this reinstatement
period, a trustee sale is scheduled. Court foreclosures can take
six months or longer, and mortgages must be foreclosed in this
manner. Once the lender has filed the appropriate court
documents and delivered notice of those court documents to the
borrower, the borrower has 30 days to respond. If the borrower
does not respond, the court issues a foreclosure ruling and a
20-day redemption period begins during which the borrower may
stop the foreclosure by paying off the amount owed or request a
postponement, delaying the sale for up to nine months. If the
borrower does not redeem or postpone, the property is scheduled
for public sale.
Notice of Sale / Auction
For an out-of-court foreclosure, the notice of sale must be
published once per week for five weeks. The final notice must be
published 10 to 30 days before the sale date. The trustee
conducts the sale. The property is sold to the winning bidder,
and the trustee issues a deed transferring ownership. In a court
foreclosure, the notice of sale must be published once per week
for four weeks. Either a court official called the master
commissioner or the sheriff conducts the sale, and the property
is sold to the winning bidder. Typically 2-3 weeks after the
sale, a hearing is conducted to confirm the sale; this is the
final chance a borrower has to redeem the property. After the
sale has been confirmed, a deed is issued that transfers
ownership to the winning bidder.
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