Nebraska Foreclosure Laws

Written by Manuel Martinez, RealtyTrac contributorPublished Jun 6, 2013

Last updated Aug 10, 2023

Key Takeaways

Nebraska allows both court and out-of-court foreclosures; the process typically lasts 4-6 months.
Mortgages must be foreclosed in court, while deeds of trust usually go out of court.
After a notice of default, borrowers get a 30-day reinstatement period to pay the amount due.
In court foreclosures, a confirmation hearing 2-3 weeks after the sale is the final chance to redeem.

Foreclosure Process Overview

Both court and out-of-court foreclosures are available in Nebraska. The typical foreclosure process can last 4-6 months.

Judicial	Non Judicial	Comment	Process Period	Publish Sale	Redemption Period	Sale/NTS
•		Judicial only	142 days	N/A	None	Sheriff

Pre-foreclosure Period

In most cases, court foreclosures are for mortgages, whereas out-of-court foreclosures are for deeds of trust. State law does not require a lender to send letters to the borrower prior to beginning the foreclosure process, but the mortgage or deed of trust may require it.

An out-of-court foreclosure is usually concluded within four months. Once a notice of default is filed and delivered to the borrower, a 30-day reinstatement period occurs during which the borrower can stop the foreclosure process by paying the amount due. After this reinstatement period, a trustee sale is scheduled.

Court foreclosures can take six months or longer, and mortgages must be foreclosed in this manner. Once the lender has filed the appropriate court documents and delivered notice of those court documents to the borrower, the borrower has 30 days to respond. If the borrower does not respond, the court issues a foreclosure ruling and a 20-day redemption period begins during which the borrower may stop the foreclosure by paying off the amount owed or request a postponement, delaying the sale for up to nine months. If the borrower does not redeem or postpone, the property is scheduled for public sale.

Notice of Sale / Auction

For an out-of-court foreclosure, the notice of sale must be published once per week for five weeks. The final notice must be published 10 to 30 days before the sale date. The trustee conducts the sale. The property is sold to the winning bidder, and the trustee issues a deed transferring ownership.

In a court foreclosure, the notice of sale must be published once per week for four weeks. Either a court official called the master commissioner or the sheriff conducts the sale, and the property is sold to the winning bidder. Typically 2-3 weeks after the sale, a hearing is conducted to confirm the sale; this is the final chance a borrower has to redeem the property. After the sale has been confirmed, a deed is issued that transfers ownership to the winning bidder.

Frequently Asked Questions

How long does foreclosure take in Nebraska?

Typically 4-6 months. Out-of-court foreclosures usually finish within four months, while court foreclosures can take six months or longer.

Can I stop a foreclosure in Nebraska?

In an out-of-court foreclosure, paying the amount due within the 30-day reinstatement period stops it. In court, you can redeem or request a postponement of up to nine months.

Sources & References

Outside sources cited in this article.

Neb. Rev. Stat. 76-1006. Sale of trust property; notice of default, Nebraska Legislature
Neb. Rev. Stat. 76-1012. Trust deed; default; reinstatement, Nebraska Legislature
Neb. Rev. Stat. 25-1531. Mortgage foreclosure; confirmation of sale, Nebraska Legislature

About the author: Manuel Martinez

RealtyTrac contributor

Manuel Martinez is a contributor to RealtyTrac who writes about local housing markets, home buying and real estate investing. He has written for RealtyTrac since 2013, covering city and state market reports, home buying guides and tips, investment financing and strategies for buying and flipping homes.