Nebraska Foreclosure Laws
Expected Timeline: Five to six months
Security Instrument: Mortgage
Type of Process: Judicial
Protections for Servicemembers: None.
Time to Respond: After judgment has been entered in foreclosure lawsuit, lender must post notice of sale on courthouse door. Notice must also be posted in five other public places and published for four weeks before sheriff sale.
Reinstatement Period: Available while lawsuit is proceeding and before the sale.
Protections for High-Cost Mortgages: None.
Redemption Period: None.
Eviction Process: Court may order former owners to leave property after sheriff sale.
Deficiency Judgments: Allowed if brought in a separate lawsuit.
Limits on Deficiency Judgments: Suit must be brought within 3 months of auction date. A deficiency is limited to the lessor of the difference between the amount owed to the bank and the fair market value at the time of the sale, or the difference between the amount owed and the sales price at auction.
Cash Exempted in Bankruptcy: $2,500 for single person, $5,000 for married couple.
State Statutes: Neb. Rev. Stat. § 25-2137 to 25-2155
In Nebraska , lenders may not use a Non-Judicial Foreclosure process. The lender must sue the borrower through a Judicial Foreclosure process. If the borrower is in default and the lender sues for foreclosure, the court will issue a judgment of foreclosure that states the amount delinquent. The judgment will also give the borrower a short time to bring the loan current. If the borrower is unable to bring the loan current, a notice of sale will be issued by the court, and the clerk of the county will advertise the sale of the property. Either all or just a part of the property may be ordered sold.
Within twenty (20) days of the filing of the judgment of foreclosure, the borrower can file a written request delaying the sale of the property for up to nine (9) months. If the borrower does not do this, the order of sale will be issued after the twentieth day of the filing of the judgment.
The borrower may bring the loan current and cure the default any time while the suit and order of sale are pending. The original judgment and order of sale remain standing and can be enforced if the borrower again defaults on the loan.
If the borrower can not cure the default, the county sheriff must post notice of the sale on the door of the county courthouse. The notice must contain the time and place of the sale, and must be posted in five other public places in the county. As well, it must be published for four (4) consecutive weeks in a generally circulated newspaper in the county in which the property is located.
Once the sale happens and is confirmed, the borrower may not redeem the property. The lender may not sue the borrower for a deficiency judgment in the event the sale price is not of a sufficient amount to pay the balance of the loan due plus costs.
State Website: www.statutes.unicam.state.ne.us