For those in Nebraska facing deficiency judgments, Nebraska laws allow such actions within three months after the sale of the security property. After the lender files a foreclosure complaint, the lender must receive court authorization to recover the debt. The court determines the fair market value of the property at the date of sale as well as other costs to calculate the entire indebtedness amount.
Current Law
76-1013. Sale of trust property; deficiency; action; judgment; amount.
At any time within three months after any sale of property under a trust deed, an action may be commenced to recover the balance due upon the obligation for which the trust deed was given as security, and in such action the complaint shall set forth the entire amount of the indebtedness which was secured by such trust deed and the amount for which such property was sold and the fair market value thereof at the date of sale, together with interest on such indebtedness from the date of sale, the costs and expenses of exercising the power of sale and of the sale. Before rendering judgment, the court shall find the fair market value at the date of sale of the property sold. The court shall not render judgment for more than the amount by which the amount of the indebtedness with interest and the costs and expenses of sale, including trustee's fees, exceeds the fair market value of the property or interest therein sold as of the date of the sale, and in no event shall the amount of said judgment, exclusive of interest from the date of sale, exceed the difference between the amount for which the property was sold and the entire amount of the indebtedness secured thereby, including said costs and expenses of sale.
25-2140. Decree; effect upon right to recover for debt.
After a complaint for foreclosure or satisfaction of a mortgage is filed, while the same is pending, and after a decree is rendered thereon, no proceedings whatever shall be had at law for the recovery of the debt secured by the mortgage, or any part thereof, unless authorized by the court.
Court Cases
The amount of a deficiency judgment is limited to the difference between the total indebtedness and the greater of the sale price or the fair market value. If the trial court finds no deficiency, the underlying obligation is satisfied. Pantano v. Maryland Plaza Partnership, 244 Neb. 499, 507 N.W.2d 484 (1993).
In determining the amount of deficiency under the Nebraska Trust Deeds Act, it is appropriate for a trial court to consider a tax lien in determining the fair market value of the property. Douglas Cty. Bank & Trust v. Stamper, 244 Neb. 226, 505 N.W.2d 693 (1993).
The obligation secured by a deed of trust, not the title to the security, determines applicability of the 3-month statute of limitations. Sports Courts of Omaha v. Meginnis, 242 Neb. 768, 497 N.W.2d 38 (1993).
Talk with an Attorney
If you are facing a deficiency judgment in Nebraska, you not only have to cover the defaulted amount but any attendant costs and expenses arising from the sale. The court will determine the full indebtedness. Talk with an experienced attorney to discuss the details of your case.
