Nevada is a recourse state, so lenders can go after the difference between the balance of the loan and the fair market value of the property on the date of the foreclosure.

The time limit to file a deficiency judgment is 6 months after the date of foreclosure/trustee sale, pursuant to NRS 40.455- this applies to foreclosure recourse, not for a short sale. Deficiency not expressly released in a short sale can be collected through litigation for up to 6 years after completion of the short sale. That’s why it’s important to have an experienced real estate agent lead successful liability release with lenders.

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