Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Nevada, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments. Nevada law permits both judicial and non-judicial foreclosures. Judicial foreclosure involves filing a lawsuit to obtain a court order to foreclose, while non-judicial foreclosure is carried out through a series of steps outlined in state law without court intervention, provided the mortgage contains a power of sale clause. The non-judicial foreclosure process is more common in Nevada and is governed by the state's Deed of Trust Act. It typically involves the lender recording a notice of default and election to sell, followed by a three-month waiting period during which the borrower can pay the overdue amount to stop the foreclosure. If the borrower does not cure the default, the lender can then schedule a sale of the property. Borrowers in Nevada also have the right to mediation before the foreclosure sale under certain conditions. It is important for homeowners facing foreclosure in Nevada to understand their rights and obligations under the law and to seek advice from an attorney if they are at risk of losing their home.