QUESTION
Is a foreclosure considered a compromise settlement in Nevada?
Asked on Jan 02nd, 2013 on Foreclosures - Nevada
More details to this question:
House foreclosed on in 2010. Nevada is a recourse state. The 6 month period for recourse has elapsed. There was no recourse action. I was asked if I had a compromise settlement on an employment questionnaire after I was offered the job. I didn't think I did but a friend said that the foreclosure may be one. I found something online that read that it may not be a compromise settlement since I live in a recourse state. Please advise.
1 ANSWER
R. Christopher Reade
The term "compromise settlement" is not a legally defined term under Nevada law. While the term is used in various statutes (see e.g. NRS 17.115--Offer of judgment), the context of each is a negotiated, arms length agreement to settle. You did not negotiate or settle with your lender. Your lender had legal rights against you to conduct a non-judicial foreclosure which it exercised. Your lender may have had rights to pursue deficiency judgment against you post-foreclosure which your Lender(s) elected not to pursue. Therefore your situation has none of the elements of what I would consider a compromise or settlement (or compromise settlement).
Answered on Jan 04th, 2013 at 7:45 PM