Foreclosure Mediation

A mortgage foreclosure is the legal process that can happen when a person borrows money from a bank or lender to buy a home. In exchange for the loan, the lender holds a lien against the property. If the borrower misses payments, the loan goes into default, and the lender can sell the property to pay off the loan—a “mortgage foreclosure.” Continue reading to learn the basics of a mortgage foreclosure in Nevada and the answers to some frequently asked questions.

What do these words mean?

Several terms are commonly used during the foreclosure process, and several words are often interchanged depending on who is speaking with you. Here are some terms to know:

1. Homeowner: This is the person who bought the house via a mortgage. The homeowner is sometimes also called the borrower, the mortgagor, the trustor, or the grantor.
2. Lender: This is the entity, usually a bank, who loans the money to the homeowner so that the homeowner can purchase the home. The lender is also sometimes called the beneficiary, the mortgagee, or the grantee.
3. Deed of trust. A deed of trust is a document that identifies the homeowner and the lender, the loan amount, the specific terms of the loan, and the property description of the home that the borrower is purchasing. The deed of trust also identifies a third-party trustee (see below for “trustee” definition). Under the terms of the deed of trust, the trustee holds on to the title of the property until the loan is paid off. When the loan is paid off, the trustee will return title of the home to the borrower. Deeds of trust also give power to the trustee to sell the property if the borrower falls behind on loan payments. Technically in Nevada, we use deeds of trusts more often than mortgages, but the term “mortgage” is the conversational term more commonly used. On these pages, we will refer to your home loans, payments, and your deed of trust as a mortgage.
4. Mortgages. In a mortgage, a homeowner signs a promissory note promising to pay back the loan to the lender within a certain period of time of the purchase of a home. The homeowner and the lender also sign a mortgage instrument, which says that the lender has a lien on the home until the loan is paid off.