Nebraska Foreclosure Laws and Statutes | NE
Nebraska Foreclosure is Judicial.
Nebraska Foreclosure Power of Sale Conferred on Trustee.
A power of sale may be conferred upon the trustee which the trustee may exercise and under which the trust property may be sold in the manner provided in the Nebraska Trust Deeds Act after a breach of an obligation for which the trust property is conveyed as security, or at the option of the beneficiary a trust deed may be foreclosed in the manner provided by the Nebraska foreclosure law of mortgages on real property. The power of sale shall be expressly provided for in the trust deed.
Nebraska Foreclosure Sale of Trust Property; Notice of Default.
According to Nebraska foreclosure law on real property, the power of
sale herein conferred upon the trustee shall not be exercised until:
(1) The trustee shall first file for record in the office of the register of
deeds of each county wherein the trust property or some part or parcel thereof
is situated a notice of default identifying the trust deed by stating the name
of the trustor named therein and giving the book and page or computer system
reference where the same is recorded and a description of the trust property,
containing a statement that a breach of an obligation for which the trust property
was conveyed as security has occurred, and setting forth the nature of such
breach and of his or her election to sell or cause to be sold such property
to satisfy the obligation;
(2) If the trust property is used in farming operations carried on by the trustor,
not in any incorporated city or village, the notice of default also sets forth:
(a) A statement that the default may be cured within two months of the filing
for record of the notice of default and the obligation and trust deed may be
thereby;
(b) A statement of the amount of the entire unpaid principal sum secured by
the trust deed, the amount of interest accrued thereon to and including the
date the notice of default is filed for record, and the dollar amount of the
per diem interest accruing from and after such date; and
(c) A statement of the amount of the unpaid principal which would not then be
due had no default occurred; and
(3) After the lapse of not less than one month, or two months if the notice
of default is subject to subsection (2) of this section,
Nebraska Foreclosure Sale of Trust Property
(1) The trustee shall give written notice of the time and place of sale particularly
describing the property to be sold by publication of such notice, at least five
times, once a week for five consecutive weeks, the last publication to be at
least ten days but not more than thirty days prior to the sale, in some newspaper
having a general circulation in each county in which the property to be sold,
or some part thereof, is situated.
(2) The Nebraska foreclosure sale shall be held at the time and place
designated in the notice of sale which shall be between the hours of nine a.m.
and five p.m. and at the premises or at the courthouse of the county in which
the property to be sold, or some part thereof, is situated.
(3) The notice of sale shall be sufficient if made in substantially the following
form:
Notice of Trustee's Sale
The following described property will be sold at public auction to the highest bidder at the .......... door of the county courthouse in .............., County of ............, Nebraska, on ........., 19...... .
Nebraska Foreclosure Notice of Default and Sale
Nebraska foreclosure law states that:
(1) Any person desiring a copy of any notice of default and of any notice of
sale under any trust deed may, at any time subsequent to the filing for record
of the trust deed and prior to the filing for record of a notice of default
thereunder, file for record in the office of the register of deeds of any county
in which any part or parcel of the trust property is situated a duly acknowledged
request for a copy of any such notice of default and notice of sale. The request
shall set forth the name and address of the person or persons requesting copies
of such notices and shall identify the trust deed by stating the names of the
original parties thereto, the date of filing for record thereof, and the book
and page or computer system reference where the same is recorded and shall be
in substantially the following form: Request is hereby made that a copy of any
notice of default and a copy of notice of sale under the trust deed filed for
record ............, 19......, and recorded in book .........., page ........,
(or computer system reference ........) Records of ............. County, Nebraska,
executed by ..........as trustor, in which ............ is named as beneficiary
and ............ as trustee, be mailed to......(insert name) ...... at .........(insert
address) ......... . Signature ..........................
(2) Not later than ten days after recordation of such notice of default, the
trustee or beneficiary shall mail, by registered or certified mail with postage
prepaid, a copy of such notice with the recording date shown thereon, addressed
to each person whose name and address is set forth in a request therefore which
has been recorded prior to the filing for record of the notice of default, directed
to the address designated in such request. At least twenty days before the date
of sale, the trustee shall mail, by registered or certified mail with postage
prepaid, a copy of the notice of the time and place of sale, addressed to each
person whose name and address is set forth in a request therefore which has
been recorded prior to the filing for record of the notice of default, directed
to the address designated in such request.
(3) Each trust deed shall contain a request that a copy of any notice of default
and a copy of any notice of sale thereunder shall be mailed to each person who
is a party thereto at the address of such person set forth therein, and a copy
of any notice of default and of any notice of sale shall be mailed to each such
person at the same time and in the same manner required as though a separate
request therefore had been filed by each of such persons as provided in this
section.
(4) If no address of the trustor is set forth in the trust deed and if no request
for notice by such trustor has been recorded as provided in this section, a
copy of the notice of default shall be published at least three times, once
a week for three consecutive weeks, in a newspaper of general circulation in
each county in which the trust property or some part thereof is situated, such
publication to commence not later than ten days after the filing for record
of the notice of default.
(5) No request for a copy of any notice filed for record pursuant to this section
nor any statement or allegation in any such request nor any record thereof shall
affect the title to trust property or be deemed notice to any person that any
person requesting copies of notice of default or of notice of sale has or claims
any right, title, or interest in or lien or claim upon the trust property.
Nebraska Foreclosure Sale of Trust Property
On the date and at the time and place designated in the Nebraska foreclosure notice of sale, the trustee shall sell the property at public auction to the highest bidder. The attorney for the trustee may conduct the sale. Any person, including the beneficiary, may bid at the sale. Every bid shall be deemed an irrevocable offer, and if the purchaser refuses to pay the amount bid by him for the property struck off to him at the sale, the trustee may again sell the property at any time to the highest bidder. The party refusing to pay shall be liable for any loss occasioned thereby and the trustee may also, in his discretion, thereafter reject any other bid of such person. The person conducting the sale may, for any cause he deems expedient, postpone the sale from time to time until it shall be completed and, in every such case, notice of postponement shall be given by public declaration thereof by such person at the time and place last appointed for the sale. No other notice of the postponed sale need be given unless the sale is postponed for longer than one day beyond the day designated in the notice of sale in which event notice thereof shall be given in the same manner as the original notice of sale is required to be given.
(1) The purchaser at the sale shall forthwith pay the price bid and upon receipt
of payment the trustee shall execute and deliver his deed to such purchaser.
The trustee's deed may contain recitals of compliance relating to the exercise
of the power of sale and sale of the property described therein, including recitals
concerning any mailing, personal delivery and publication of the notice of default,
any mailing and the publication and posting of notice of sale, and the conduct
of sale; and such recitals shall constitute prima facie evidence of such compliance
and conclusive evidence thereof in favor of bona fide purchasers and encumbrancers
for value and without notice.
(2) The trustee's deed shall operate to convey to the purchaser, without right
of redemption, the trustee's title and all right, title, interest and claim
of the trustor and his successors in interest and of all persons claiming by,
through or under them, in and to the property sold, including all such right,
title, interest and claim in and to such property acquired by the trustor or
his successors in interest subsequent to the execution of the trust deed.
The trustee shall apply the proceeds of the trustee's sale, first, to the costs and expenses of exercising the power of sale and of the sale, including the payment of the trustee's fees actually incurred not to exceed the amount which may be provided for in the trust deed, second, to payment of the obligation secured by the trust deed, third, to the payment of junior trust deeds, mortgages, or other lien holders, and the balance, if any, to the person or persons legally entitled thereto.
Nebraska Foreclosure Deficiency Judgment
At any time within three months after any sale of property under a trust deed, as hereinabove provided, an action may be commenced to recover the balance due upon the obligation for which the trust deed was given as security, and in such action the complaint shall set forth the entire amount of the indebtedness which was secured by such trust deed and the amount for which such property was sold and the fair market value thereof at the date of sale, together with interest on such indebtedness from the date of sale, the costs and expenses of exercising the power of sale and of the sale. Before rendering judgment, the court shall find the fair market value at the date of sale of the property sold. The court shall not render judgment for more than the amount by which the amount of the indebtedness with interest and the costs and expenses of sale, including trustee's fees, exceeds the fair market value of the property or interest therein sold as of the date of the Nebraska foreclosure sale, and in no event shall the amount of said judgment, exclusive of interest from the date of sale, exceed the difference between the amount for which the property was sold and the entire amount of the indebtedness secured thereby, including said costs and expenses of sale.
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