You Just Got a Notice of Default. What Are Your Next 35 Days?

Receiving a Notice of Default and Election to Sell can make it feel as though your home is about to be sold immediately. It is a serious stage of the Nevada foreclosure process, but it does not mean the property is being auctioned tomorrow. For deeds of trust subject to NRS 107.080, Nevada law generally gives the borrower a 35-day period to cure the deficiency, calculated from the day after the Notice of Default is recorded and properly mailed.

Those 35 days should not be treated as a period to simply wait and see what the lender does. They are an opportunity to determine exactly what is owed, investigate whether the foreclosure is being conducted properly, pursue available foreclosure-prevention options, and obtain legal advice if there is a dispute. If you need Foreclosure Defense, acting during this early period can give your attorney substantially more time to evaluate the situation before the foreclosure progresses.

What Does a Nevada Notice of Default Actually Mean?

A Notice of Default and Election to Sell is a formal document stating that a borrower has failed to perform an obligation secured by the deed of trust and that the beneficiary or trustee is proceeding toward foreclosure. Nevada law requires the notice to describe the deficiency in performance or payment. It may also contain notice that the lender intends to accelerate the unpaid balance if the loan permits acceleration.

The notice is therefore more significant than an ordinary collection letter. It becomes part of the property’s public record and starts statutory foreclosure periods. At the same time, the Notice of Default is not itself the foreclosure sale. For a typical deed of trust subject to NRS 107.080, at least three months must generally elapse after recording the notice before the trustee may exercise the power of sale, subject to additional statutory requirements and exceptions.

The 35-Day Period: What It Really Means

The 35-day period is frequently misunderstood. Under NRS 107.080, for deeds of trust coming into force on or after July 1, 1957, the relevant parties generally have 35 days to make good the deficiency before the trustee’s power of sale may be exercised. The period begins on the first day after the Notice of Default is recorded and a copy is properly mailed or otherwise delivered as required by the statute.

Curing the default can prevent acceleration when the statutory requirements are satisfied, including payment of the deficiency and applicable costs, fees, and expenses associated with the notice and curing the default. The exact amount needed should therefore be obtained from the appropriate lender or servicer rather than estimated from the monthly payment amount.

Most importantly, the 35-day period is not necessarily the entire foreclosure timeline. Other Nevada requirements can continue to apply after that period expires, particularly for qualifying residential mortgage loans and owner-occupied homes.

Your First Step Should Be Confirming the Dates

Do not calculate the deadline simply from the day the envelope arrived in your mailbox. Nevada law ties the 35-day period to the recording and required delivery of the Notice of Default. The date shown on the recorded document therefore deserves careful attention.

Keep the entire foreclosure package, including the envelope in which the notice arrived. Check the recorded document for the property address, legal description, borrower information, amount claimed to be due, recording information, and trustee information. If any information appears inconsistent with your records, make a note of it and provide the documents to your attorney.

This is also the time to obtain your loan payment history and determine exactly how the alleged default developed. A missing payment, servicing error, escrow issue, or disputed amount may require a different response from a borrower who simply cannot afford the current payment.

Find Out Exactly What It Will Take to Cure the Default

If you have enough funds to reinstate the loan, obtain the lender or servicer’s current reinstatement amount in writing. Do not assume that paying the amount shown on an old monthly statement will cure the foreclosure.

The amount may include missed payments, late charges, foreclosure-related costs, fees, and other amounts permitted under the loan documents and applicable law. Nevada’s requirements for residential mortgage loans also contemplate information concerning the amount necessary to cure the default or bring the loan current.

If you can cure the default, determine how and when the lender requires payment and obtain confirmation after payment. If you cannot cure it, that does not necessarily mean there is nothing left to do. The next step should be evaluating available alternatives rather than allowing the 35-day period to expire without a plan.

Ask About Foreclosure-Prevention Alternatives Immediately

For qualifying residential mortgage loans, Nevada law contains additional requirements concerning foreclosure-prevention alternatives. Before recording a Notice of Default, the mortgage servicer, mortgagee, or beneficiary generally must provide specified information to the borrower, including information about available foreclosure-prevention alternatives.

After a Notice of Default is recorded, a servicer that offers foreclosure-prevention alternatives generally must provide information about the process for seeking an alternative unless the borrower has already exhausted that process. Nevada law also establishes procedures governing applications, acknowledgment of receipt, evaluation, offers, denials, and appeals.

This is why a homeowner should not assume that foreclosure is inevitable simply because the Notice of Default has been recorded. The available alternatives depend on the particular loan, property, borrower, and circumstances.

Gather Your Financial Documents Now

If you intend to seek a loan modification or another foreclosure-prevention alternative, start assembling the financial information immediately. Waiting until the servicer requests every document can cause unnecessary delays.

Depending on the application, you may need information concerning income, employment, bank accounts, expenses, tax returns, assets, debts, and the property’s financial obligations. Keep copies of everything you submit and record when documents were sent.

If the servicer claims that an application is incomplete, ask for the specific missing information in writing. Nevada law contains procedures governing deficiencies in applications and the evaluation process, so maintaining a complete record of communications can become important if a dispute later develops.

Review the Foreclosure for Possible Errors

A Notice of Default should not be accepted blindly. Review whether the correct borrower and property are identified, whether the claimed default appears accurate, and whether the lender or servicer appears to have followed the applicable statutory requirements.

The underlying loan documents also matter. Obtain the promissory note, deed of trust, relevant assignments if applicable, and payment history. Nevada’s residential foreclosure statutes specifically allow borrowers to request certain loan and payment records.

An error does not automatically invalidate a foreclosure, and not every disagreement with a servicer creates a legal defense. The significance of a problem depends on the applicable statute, facts, timing, and available remedy. That is why the documents should be reviewed together rather than relying on a single apparent mistake.

Do Not Confuse the 35-Day Period With a 35-Day Sale Deadline

One of the most dangerous misunderstandings is believing that the lender must sell the property immediately after the 35 days expire. The 35-day period is a statutory period relating to curing the deficiency; it is not a statement that the house will be sold on day 36.

Under NRS 107.080, the trustee generally cannot exercise the power of sale until at least three months have elapsed after recording the Notice of Default, along with satisfaction of the other statutory requirements.

For qualifying residential mortgage loans, additional rules can affect the timing. For example, Nevada law addresses foreclosure-prevention applications and provides that certain periods can be affected while an application, appeal, mediation, or bankruptcy proceeding is pending.

That does not mean you should wait. It means the 35-day deadline is one of several important dates in a larger foreclosure process.

What Happens After the 35 Days?

If the default has not been cured and no other applicable process prevents the foreclosure from continuing, the trustee may proceed toward the next stages of the foreclosure subject to Nevada’s statutory requirements. For residential foreclosures, additional notice requirements apply before the sale.

For example, Nevada law requires a copy of the Notice of Default in a residential foreclosure to be posted conspicuously on the property not later than 100 days before the sale, while a Notice of Sale must generally be posted at least 15 days before the sale.

For certain residential mortgage loans, NRS 107.550 also addresses the timing of the later foreclosure stages, including requirements concerning when a Notice of Sale must be recorded and when the sale must occur, subject to tolling provisions.

What If You Cannot Afford to Reinstate the Loan?

If paying the entire arrearage is impossible, focus on the alternatives rather than treating the 35-day deadline as the end of the road. Depending on the circumstances, those alternatives can include a loan modification, repayment arrangement, short sale, deed in lieu of foreclosure, or another foreclosure-prevention option.

The appropriate choice depends on your financial circumstances, the amount of equity in the property, the lender’s requirements, your ability to resume payments, and the legal status of the foreclosure.

If there is evidence of a servicing error, defective notice, or another legal issue, foreclosure defense may also need to be considered. A homeowner should understand the legal and financial consequences of each option before signing a settlement, modification, deed, or other document transferring an interest in the property.

When Should You Speak With a Foreclosure Attorney?

The best time is before the 35-day period becomes an emergency. An attorney can review the Notice of Default, deed of trust, payment history, title records, correspondence with the servicer, and any loss-mitigation application to determine what issues require attention.

Legal review can be particularly important when the amount claimed is disputed, the homeowner has already applied for assistance, the property is owner-occupied, the servicer has rejected an application, multiple borrowers are involved, or a sale date has already been scheduled.

Nevada law provides specific remedies for certain violations of foreclosure requirements. For example, NRS 107.560 allows qualifying borrowers to seek injunctive relief and economic damages for certain violations of the statutory foreclosure-prevention provisions.

About Milan Chatterjee

This article was prepared by Milan Chatterjee, a Nevada and California licensed attorney and founder of My Real Estate Lawyer, a real estate law practice dedicated to protecting property owners, investors, landlords, homeowners, businesses, and community associations throughout Nevada.

Milan focuses on real estate litigation, purchase and sale disputes, property transfers, quiet title actions, title disputes, boundary disputes, easements, foreclosure, landlord-tenant matters, HOA disputes, and other complex real estate issues. He earned his law degree from UCLA School of Law and also attended NYU School of Law, and previously served as Associate Compliance Counsel at Las Vegas Sands. He helps clients throughout Las Vegas, Reno, and communities across Nevada.

Frequently Asked Questions

Conclusion

Receiving a Nevada Notice of Default is serious, but it is not the same thing as receiving a foreclosure sale notice. For deeds of trust subject to NRS 107.080, the law generally provides a 35-day period to cure the deficiency, calculated from the day after the Notice of Default is recorded and properly delivered.

Those 35 days should be used deliberately. Confirm the dates, obtain the exact reinstatement amount, gather your loan records, investigate available loss-mitigation options, preserve communications, and have the foreclosure reviewed if you believe something is wrong.

The most important mistake to avoid is treating the notice as either an immediate loss of the home or something that can safely be ignored. It is a formal warning that the foreclosure process has reached a significant stage, and the actions taken now can affect what happens next.