How Foreclosure Works in Nebraska

Both. A trust deed that expressly includes a power of sale can be foreclosed out of court by the trustee under the Nebraska Trust Deeds Act, or, at the lender's (beneficiary's) option, in court like a mortgage. Mortgages are foreclosed by filing a complaint in the district court of the county where the property is located.

For a trustee's sale, the trustee or the trustee's attorney must first record a notice of default in each county where the property is located, describing the breach and the election to sell. Within 10 days after recording, a copy must be mailed by registered or certified mail to the parties to the trust deed and to anyone who recorded a request for notice; if the borrower's address is unknown, the notice of default must be published once a week for 3 weeks. The notice of sale must be published in a newspaper of general circulation in the county once a week for 5 consecutive weeks, with the last publication at least 10 but not more than 30 days before the sale, and must be mailed by registered or certified mail to the same people at least 20 days before the sale. For farm property outside a city or village, the notice of default must also state that the default may be cured within two months and give the amounts owed.

For a trustee's sale, the notice of sale may be given only after at least one month has passed since the notice of default was recorded (two months for farm property covered by § 76-1006(1)(b)). The notice of sale must then be published for 5 consecutive weeks, with the last publication 10 to 30 days before the sale. A sale postponed more than 45 days beyond the noticed date must be re-noticed like the original. In a court (judicial) foreclosure, the homeowner can ask, within 20 days after the decree, that the sale be stayed; the stay is generally nine months, but three or six months for certain residential mortgages depending on the original loan term.

Yes, for trust deeds. Within one month after the notice of default is recorded (two months for farm property covered by § 76-1006(1)(b)), the borrower, a successor, or a junior lienholder may pay the entire amount then due (not counting principal that would not be due without the default), plus costs actually incurred and trustee's fees capped at the greater of $50 or one-half of 1% of the unpaid principal. The foreclosure is then dismissed and the loan reinstated as if it had never been accelerated.