Your Guide to Nebraska Foreclosure Law as a Homeowner

A house goes for sale in foreclosure in Nebraska.

Financial hardship can happen to any homeowner. A Nebraska homeowner who misses several mortgage payments might be facing the possibility of a foreclosure process. The lender who granted the mortgage loan can begin foreclosure proceedings to recoup their investment.

Foreclosing on real property in Nebraska is a lengthy and complicated process. A notice of default of payment does not necessarily mean a borrower will lose their home, and state law protects borrowers’ interests and attempts to help them save their homes.

Keep reading our guide to know your rights and how the foreclosure process unfolds.

Nebraska Foreclosure Laws

Federal law requires a lender to contact a borrower by phone to discuss financing options. The lender will discuss a loan modification, forbearance, or repayment plan. Lenders must make contact by phone within 36 days of a missed payment.

The lender must inform you in writing within 45 days of a missed payment about financial options to resolve the issue. They will appoint someone to help you prevent foreclosure if possible. A financial consultant will discuss your options and help you find the best resolution.

In Nebraska, trust deeds typically require that a lender send a “breach letter.” This letter details the missed payments and lets the borrower know the loan is in default. The borrower has the option to catch up on missed payments before the foreclosure process begins. The breach letter is the official start of the foreclosure process.

Nebraska law requires a lender to wait until a borrower is more than 120 late on their mortgage payments. This period gives homeowners time to pay the outstanding amount or consult a foreclosure lawyer to determine the best action.

Nonjudicial foreclosure under the power of sale in trust or deed is the most common in Nebraska. Nonjudicial means that everything is resolved outside of the courtroom, and lenders must carefully follow all the steps of the foreclosure process. If the lender does not follow the process, the borrower has grounds to stop the foreclosure.

Nebraska Foreclosure Process

The nonjudicial foreclosure process begins as soon as the lender files a notice of default in the county’s recorder’s office. The borrower has one month to pay the outstanding mortgage payments. Bringing the loan up to date is called “reinstatement.” Reinstatement is the quickest way to avoid foreclosure and save your home.

The lender must send a copy to anyone who has requested notice in the county records.

A Nebraska deed of trust contains a clause stating that the borrower requests a copy of the default and sale notice.

The lender must wait 120 days, and then they can publish the notice of sale in the newspaper for five consecutive weeks. They must send a copy to anyone who filed for notice at least 20 days before the sale date.

At the foreclosure sale, the lender will make a credit bid. They can bid up to the amount owed or less. When the lender has the highest bid but is less than the amount owed, they can get a deficiency judgment against the borrower. At this point, the property becomes real estate owned.

The lender is responsible for the real estate-owned property, and the lender will attempt to sell the property for an amount that will cover the loan. Buyers can purchase real estate-owned properties at a foreclosure auction for much less than their actual market value, but they often need a great deal of repair.

A foreclosure sale can sometimes work to your advantage if someone bids more than what you owe, and you can pay all lien holders. Once you pay all your debts, any money left over is yours. Unfortunately, most homes sell for a significant discount, and the homeowner is responsible for the outstanding amount.

A house goes for sale in foreclosure in Nebraska.

Foreclosure Laws as a Homeowner

Homeowners do not need to panic when they receive foreclosure notices. The foreclosure process only happens after some time, and you will have time to pay the debt or work out a financial option that works for you.

A Nebraska attorney with experience with foreclosures can recommend the best way to proceed. There are state and federal laws that protect the rights of homeowners. An experience foreclosure lawyer can take advantage of these laws to give you more time or to prevent foreclosure altogether.

Homeowners have 120 days from the time they miss their mortgage payments. You have four months to work with your lender or a foreclosure attorney to work out a solution. Federal law requires lenders to make every effort to work with their clients so they can avoid foreclosure.

Avoiding Foreclosure in Nebraska

There are several ways that you can avoid foreclosure in Nebraska.

The most obvious way is to bring your mortgage payments up to date. You can pay all outstanding fees and debts owed to your lender. You can also redeem the property by paying off the loan amount before the foreclosure sale. Nebraska does not offer the right of redemption to property owners after a nonjudicial foreclosure sale.

Once the lender files the notice of default, the homeowner has one month to reinstate the loan. The law allows two months for agricultural property, and some mortgage agreements allow more time for reinstatement. Check your mortgage papers for the details about reinstatement details.

Another way is to negotiate a loan modification that you can afford. You might have to lengthen the term of your mortgage agreement, but the mortgage payment may be more manageable. You can sign a promissory note that stipulates you will pay outstanding fees at the end of the mortgage term.

You can ask for “forbearance.” Some homeowners hit a rough patch but soon find themselves back on their feet, financially speaking. Forbearance is getting a break from your mortgage payments for a while. Some lenders will agree to postpone several mortgage payments until the borrower is again in control of their budget.

You may see no other alternative but to sell your home. You can try and sell it on the real estate market if you are confident it will sell quickly. The impending foreclosure sale might convince you to look at cash home buyers in Nebraska. They will consider the fair market value of your home and offer a stress-free cash offer.

A foreclosure lawyer might advise you to consider chapter 13 bankruptcy. Sometimes, bankruptcy is the wisest option. A bankruptcy attorney can show you how to reorganize your debt and stop the foreclosure process. Filing for bankruptcy immediately stops the foreclosure process, and you can save your home and make a plan to pay your debt.

Can You Sell Your House in Foreclosure in Nebraska

Yes, you can sell a house as long as you sell it before the foreclosure sale. If you have any questions, you should consult a law firm specializing in the practice areas of foreclosure and bankruptcy.

You can attempt to sell your house without a realtor, but you have a time limit of 120 days. Another option is to consult with companies that announce “we buy houses Lincoln residents are looking for” or that can sell a house fast in Omaha. They will offer you a cash deal; you don’t have to worry about prepping the house to sell or closing dates.

Selling a house in foreclosure is a time-sensitive task. You want to get out of a mortgage you can’t afford and start a new life with a fresh financial start. You can sell your house yourself and save on realtor commissions. Companies that specialize in buying homes in foreclosure can make the sale quick and efficient.

These companies will provide clients with a fair cash offer, and they can close very quickly. Homeowners will not have to repair their homes and clean them for real estate showings, and it is as easy as accepting the cheque and signing on the dotted line.

You will have to ask your lender’s permission to sell your house for less than what it’s worth. You must work out a payment plan for the outstanding mortgage amount. Many lenders prefer that the homeowner sell the house to avoid the headache of foreclosing and then selling the home.

A foreclosure does not have to be as bad as most people think, and it might force you to take control of your finances and start fresh. You can rebuild your financial portfolio, invest in a more affordable home, and work to rebuild your credit and resolve the issues that led to foreclosure.


People often think losing their home is inevitable when a lender begins foreclosure proceedings. Fortunately, this is only sometimes the case. Homeowners have time to resolve their financial problems and save their homes. Most lenders would work with their clients instead of foreclosing on their homes.

You should call a foreclosure lawyer to learn your options if you can’t keep up with your monthly mortgage payments. An experienced attorney will know precisely how to deal with your lender and get through foreclosure. If you decide selling is your only option, contact Cash Home Buyers in Nebraska, they look forward to working with you.

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