Nevada has a "one action rule" which requires them in most cases to go after the collateral before seeking other remedies. What that means in your case is that if they attempt to get a judgment on a debt secured by property before going after the property, you can usually make a motion to stay the proceedings until the property is dealt with (i.e. until the foreclosure process is completed). You also have the option of allowing them to go forward, and if they get a judgment before completing a foreclosure sale, then the property becomes unencumbered by the debt. In most cases that is unhelpful to you, but there are some circumstances where it can be beneficial.
Answered on Dec 12th, 2011 at 8:23 AM