Legal Question in Real Estate Law in Nevada

Default of Notice

We are holding a Note & Deed of Trust for property we sold. Buyer was making mo. Int.-only pymts to us for 1 yr due the 10th of ea mo beginning 11-04 to 11-05. 1st Amend. to the Note was made extending maturity date to 11-06. 2nd Amend. extended maturity date to 11-07. When signing 2nd amend. 11/06, Buyer gave us a check for 2 mo. Int. & was making mo. pymts up til 8/07. No pymt. was received in 9/07 & we didn’t consider it late since he had been paid up a mo. in advance, correct? Buyer resold the property & since 9/07 has been saying it’s in escrow and we’re told wk after wk that escrow was closing. To date, it has not closed & we have not heard from the Title company & are still told by our buyer that escrow will close any day. His 10-07. pymt. was due the 10th and currently 12 days late. How long do I let him go before the Note is considered in default? I plan to demand full pymt. be received not later than this wk, or he’ll be considered in default & I’ll file notice of default & begin foreclosure. Is this correct steps I should take? Please advise.


Asked on 10/22/07, 5:35 pm

1 Answer from Attorneys
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

Re: Default of Notice

Have you called the title company to confirm that escrow was actually opened. The escrow office should send you what is called a "Beneficiary Demand for Payoff". Have they done this?

I would need to see your note but it is probably late on the 25th, 15 days after the due date. You should not do the foreclosure yourself and you can hire a company for about $1800, which the borrower would pay you back for.

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Answered on 10/22/07, 5:58 pm


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