I am copying this off of an e mail I received and the response of mine herewith from a well known tax attorney who for some reason trusts what I say?  Go figure, the names and addresses etc. have been omitted:

 1. What is his realistic time frame before foreclosure. He cannot make
up the payments.

2. What steps should he take to protect himself and his family so they
do not end up in deep dodo.

Any help appreciated.
 
Re: Nevada Foreclosure Time Frames for Reno home in Foreclosure
 

1. Time Frame; approximately 90 days from Notice of Default filing then a Trustees Sale will be filed.  Trustees sale is approximately 20 days. 

After Nevada foreclosure takes place, if he decides to stay, he will be notified by a bank representative and sometimes a Reno Realtor.  That can be anywhere from 2 days to months (after Trustees Sale).  At that point, he will be served an eviction notice; typically 3 days.  He may be offered cash for keys to leave voluntarily; that can be $300. to $3,000. but not a guarantee to get any cash for keys.  They (Countrywide) paid $2,400 to get home in Arrowcreek (with tenant) vacated about a month after Trustees Sale.  If he rents it out or gets a “tenant” in there, they have to file a complaint after the sale and that can be a month or so to evict, the cash for keys is generally more with a tenant as they are an “innocent party” and take longer to evict.
 
2.  Steps; Apply for the Obama Loan Modification package which is generally on the first page of every banks web page or a help now type of link.  Some banks still do their own loan modifications without the Obama plan.  Once he has a Loan Mod. package in place, he needs to ask for a cancellation of Notice of Default and Trustees Sale.  If they won’t do that, ask for a delay for the Trustee’s Sale.  It also helps to have it listed and do an either or scenario; Short Sale or Loan Mod, whatever comes first.  Many loan mods will bench the back payments, lower the interest rate and lengthen the note term to 40 years or similar scenarios.  The rosetta stone of loan mods is to be in the sweet spot where you are hurting but yet there is a light at the end/current income to make the payments.  Many loan mod companies know the formula and how to dot the I and cross the T.
 
At this point, many people ask about bankruptcy; as you know, the laws have made it tougher and generally there is not enough equity in a lot of folks property to consider it.  However, if they are one of the lucky few with assets in this economy, it of course is an alternative.
 
As I understand it, their is no forgiven debt IRS monies due for the deficiency on a primary residence even though he may get 1099d, there is however tax consequences for non primary residences.  The bank of course can always come after them for the deficiency amount.  In Nevada, they have a 6 month statute (for a deficiency judgement) according to a few attorney’s I have visited with.  The next question is: will they do it, the answer is; maybe and it depends.  Keep in mind; I am referring to 1st TDs, a 2nd can be as long as 6 years for a deficiency judgement according to a B.K. attorney I visited about this.  This seems to be the reason many are going B.K. these days as they are worried about the 2nd coming after them in the future when they are making more $.
 
If he decides to hire a loan modification so called expert; remember it is illegal to get money up front; only upon satisfactory modification; that will be his first clue it is a scam if they ask $ in advance.  I am still looking for a legit. company.  Ben claims he has an in?  Many are just the same loan officers that got everyone in this mess or some type of Nouveau Riche or miracle juice M.L.M peddlers now doing loan mods.
 
We are seeing the result now of a lifting of the moratorium as banks were waiting for this Obama plan.  This may be the reason your friend recently got a Notice.  It (Obama plan) doesn’t help Reno Home owners much as they tend to be upside down too much for their (Obama) formula.  In any event, many banks still have their own modification programs in place.
 
I personally have got a stay on some homes after notice of default has been filed up to a year or so.  However, some have called them right out of the gate with no workout at all.
 
This is not advice of any sort and I am of course not an attorney.  I am talking just from what I have researched, seen and heard. 
Although reliable, I cannot guarantee the accuracy of the above statements and I would of course recommend he seek a professional to help him out with this.
 
I wish him the best and feel his hurt, it is tough with a family living in it as to how long to stay after the gavel hits.  If the kids are old enough to remember things this could be something they may remember for the rest of their lives if they get evicted.  If it is any consolation, I deal with stories like this on a daily basis, this is not his fault and he is a victim of unfortunate events; we are in one of the highest foreclosure areas in the world.

Here is Ticors flow chart:

 

Thank you,
Ron Bell
(775) 750-5256
 

This interpretation by Ticor Title is based on Nevada Foreclosure Laws (NRS 107.080-107.100) and is deemed reliable but not guaranteed

Filed under: FORECLOSURE HELP, FORECLOSURES, SHORT SALES