Nebraska Foreclosure Laws

Nebraska foreclosure laws allow for both judicial and non-judicial foreclosures. Most foreclosures take between four and six months to complete.

Pre-Foreclosure

Most judicial foreclosures in Nebraska are for mortgages. Most non-judicial foreclosures involve deeds of trust. Some mortgages require the lender to send the debtor a letter alerting the debtor that the lender is beginning the foreclosure process. However, Nebraska foreclosure laws do not require this courtesy if it is not included specifically in a deed of trust or mortgage.

A non-judicial Nebraska foreclosure begins when the lender files a notice of default and has it mailed or delivered to the debtor. After the notice of default is filed and sent, there is a 30-day reinstatement period. During this stage of the process, the debtor can halt foreclosure proceedings by paying the full amount the lender finds due. If during the reinstatement period the debtor does not pay the full amount due, the lender schedules a trustee sale to continue with the foreclosure. The non-judicial Nebraska foreclosure often takes about four months.

A judicial Nebraska foreclosure begins when the lender files the right documents in court has the notice of the filing sent to the debtor. The debtor has thirty days to respond to the filing. If the debtor fails to respond, the court issues a ruling against the debtor and starts a twenty day redemption period. During this period, the debtor can pay the amount owed to stop the foreclosure or can even appeal to have the foreclosure postponed for up to nine months. If the debtor does not resolve the debt, the property auction is scheduled. Judicial foreclosures are always used in the event of a mortgage and the process of these foreclosures can take six months or more.

Notice of Auction

Before the public auction can take place for a non-court foreclosure, the notice of sale must be published. The notice has to be published in a local newspaper for five weeks at a rate of once per week. The last notice to be published must appear in the newspaper between ten and thirty days before the auction day. The auction is overseen by the trustee and the winning bidder is granted a deed that transfers ownership.

In a judicial Nebraska foreclosure, the notice of sale must be published in a local newspaper weekly for four weeks before the auction date. The sheriff or a master commissioner (a court official) oversees the foreclosure sale. A hearing is held two to three weeks after the auction to confirm the sale. Until this point, the debtor can still redeem the property. Once the sale is confirmed by a court, the winning bidder is given ownership of the property.