Nebraska Foreclosure Information
When you develop a definite plan of action with well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We have outlined the foreclosure process for the
state of Nebraska.
The Process
Foreclosures in Nebraska take place judicially, through the filing of petitions
for foreclosure in the Nebraska District Court for the county where the property is located.
If a prior lawsuit has been won by the lender for the amount due on a loan, it does not
stop a lender from filing a subsequent lawsuit seeking a foreclosure sale of mortgaged premises.
However, before the court will hear a petition for foreclosure, the lender must prove it
has been unable to collect what was judged to be owed in the prior lawsuit. If a suit has
been brought for satisfaction of a mortgage rather than a true petition for foreclosure,
the lender can only seek the amount due and possession of the property rather than true
foreclosure. Whenever a petition for foreclosure is filed either alone or in conjunction
with a petition for satisfaction of a mortgage, then the court can decree a sale of the
mortgaged premises or such part as is needed to pay off the loan and the costs of suit.
While the lawsuit is pending, the borrower has the right to bring in the
past due payments, including principal and interest, and costs, and the lawsuit proceedings
will be suspended (stayed). Nevertheless, the court will enter a decree of foreclosure and
sale. This will not be enforced unless there is a further order of the court, which will
not be given unless the borrower defaults in the future payment of any installment or a
portion of one.
The court may order the entire property to be sold, or some part of it,
based on a report by the sheriff as to what appears to be the most feasible. The order of
sale may be stayed up to nine months after the judgment if the borrower files a written
request for a delay (stay) with the clerk of the court within 20 days after the judgment
is rendered. Otherwise, the order commanding the sale of the mortgaged property will be
given 20 days after the judgment.
The sheriff or officer holding the sale must give public notice of the time
and place of the sale by posting the notice on the courthouse door and at five other public
locations in the county where the property is located. Two of the five locations must be
in the precinct where the property is located. In addition, the sheriff must advertise the
property for sale once a week for four weeks in a newspaper either printed in the county
or generally circulated in the county. After making the sale, the sheriff or officer will
report it back to the court, which will then confirm the sale. Once the sale is confirmed,
the borrower has no right to redeem the property.
A deed shall be executed by the sheriff and it will vest in the purchaser
the same title the borrower had. The sales proceeds will be applied to discharge the lender's
debt, and if there is a surplus, it goes to other persons who are entitled to it, or it
must stay with the court for three months before it can be paid to the borrower.
Deficiency
A deficiency is only possible as a continuation of a foreclosure suit, but
not while the foreclosure action is pending or remains incomplete.
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