Legal Question in Real Estate Law in Nevada

Yes they can. While we now have an anti-deficiency law in Nevada, this only applies to primary residence and the home you are talking about is a rental. You can file a Chapter 7 Bankruptcy or even a Chapter 11 reorganization. If you commit five years of income to a plan, you can only pay the value and not the loan balance on the rental.

Finally, you have a $550,000 exemption on your house so if they lien it and your equity is less than $550,000, you can file something with the judge to take the lien off.