The State of Nebraska provides for foreclosures in court and out-of-court procedures. The foreclosure process would typically take about 4-6 months.

The court foreclosure procedure is largely applied for mortgages, while foreclosures concerning deeds of trust are done in out-of-court proceedings. The lender is not required to send any communication to the borrower before initiating the foreclosure procedure under the Nebraska law, but such an intimation of the action may be required by the trust deed or the mortgage.

A non-judicial, out-of-court, foreclosure is generally concluded within a period of four months. Once the default of payment occurs and the same is notified to the borrower, a 30 day period of reinstatement is brought into play. The borrower has the option of halting the foreclosure process within this reinstatement period by remitting the entire amount due. After the reinstatement period is complete, and if the borrower does not pay the dues, a foreclosure sale by trustee is scheduled.

Foreclosure procedures initiated through the court may take a minimum period of six months, and all mortgages are required to be foreclosed through the courts only. In the event of default by the borrower, the lender shall file the appropriate documents with the court and shall issue a notice of such a filing of the documents to the borrower. The borrower shall have a period of 30 days to delivery a response.

If there is no response from the borrower, the court shall issue a ruling of foreclosure and a redemption period of 20 days shall begin. During this redemption period, the borrower may halt the foreclosure proceedings by remitting in full the entire amount owed, or submit a request for postponement of sale for a maximum period of nine months. In case the borrower fails to redeem the property or apply for postponement, the property shall be offered for a scheduled public sale.

In an out-of-court sale of foreclosure, the notice shall be published in a local newspaper once in a week for a period of five consecutive weeks. The date of the final publication shall be published within a period of 10 to 30 days prior to the date of the foreclosure sale. The sale is conducted by the trustee. The property is sold to the highest bidder, and the ownership of the property is transferred by the trustee by issuing a deed.

In the case of a foreclosure by court, the foreclosure sale notice shall be published in a local newspaper once a week, for a period of four consecutive weeks. The sale is conducted by either the court official, also called as master commissioner, or the Sheriff, and the highest bidder shall be awarded the property. A hearing is held typically 2-3 weeks after the date of the sale to confirm the sale; this hearing shall be last opportunity for the borrower to redeem the property. Once the sale is confirmed by the court, a deed transferring ownership to the winning bidder is issued.

If you need more information about Nebraska foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.