Nevada Revised Statutes

Nev. Rev. Stat. § 40.462 (2026)

Distribution of proceeds of foreclosure sale

✓ current as of July 2026

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NRS 40.462 Distribution of proceeds of foreclosure sale.

1. Except as otherwise provided by specific statute, this section governs the distribution of the proceeds of a foreclosure sale. The provisions of NRS 40.455, 40.457 and 40.459 do not affect the right to receive those proceeds, which vests at the time of the foreclosure sale. The purchase of any interest in the property at the foreclosure sale, and the subsequent disposition of the property, does not affect the right of the purchaser to the distribution of proceeds pursuant to paragraph (c) of subsection 2, or to obtain a deficiency judgment pursuant to NRS 40.455, 40.457 and 40.459.

2. The proceeds of a foreclosure sale must be distributed in the following order of priority:

(a) Payment of the reasonable expenses of taking possession, maintaining, protecting and leasing the property, the costs and fees of the foreclosure sale, including reasonable trustee’s fees, applicable taxes and the cost of title insurance and, to the extent provided in the legally enforceable terms of the mortgage or lien, any advances, reasonable attorney’s fees and other legal expenses incurred by the foreclosing creditor and the person conducting the foreclosure sale.

(b) Satisfaction of the obligation being enforced by the foreclosure sale.

(d) Payment of the balance of the proceeds, if any, to the debtor or the debtor’s successor in interest.

Ê If there are conflicting claims to any portion of the proceeds, the person conducting the foreclosure sale is not required to distribute that portion of the proceeds until the validity of the conflicting claims is determined through interpleader or otherwise to the person’s satisfaction.

3. A person who claims a right to receive the proceeds of a foreclosure sale pursuant to paragraph (c) of subsection 2 must, upon the written demand of the person conducting the foreclosure sale, provide:

(a) Proof of the obligation upon which the claimant claims a right to the proceeds; and

(b) Proof of the claimant’s interest in the mortgage or lien, unless that proof appears in the official records of a county in which the property is located.

Ê Such a demand is effective upon personal delivery or upon mailing by registered or certified mail, return receipt requested, to the last known address of the claimant. Failure of a claimant to provide the required proof within 15 days after the effective date of the demand waives the claimant’s right to receive those proceeds.

(Added to NRS by 1989, 887; A 2015, 3342)

Notes of Decisions

Cited in 7 cases (3 in the last 5 years), 1990–2025 · leading case: Sandpointe Apts., LLC v. Eighth Jud. Dist. Court of the State of Nevada ex rel. Cnty. of Clark, 313 P.3d 849 (Nev. 2013).

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Sandpointe Apts., LLC v. Eighth Jud. Dist. Court of the State of Nevada ex rel. Cnty. of Clark, 313 P.3d 849 (Nev. 2013). “Further, NRS 40.462(1), which governs the distribution of foreclosure sale proceeds, provides that the right to receive proceeds from the sale vests at the time of the foreclosure sale; it is logical that the right to a judgment for the amount not received in a foreclosure sale…”

Bonicamp v. Vazquez, 91 P.3d 584 (Nev. 2004). “In that action, the judgment must be rendered for the amount found due the plaintiff, and the court, by its decree or judgment, may direct a sale of the encumbered property, or such part thereof as is necessary, and apply the proceeds of the sale as provided in NRS 40.462. 2.…”

United States v. Cail, 746 F. Supp. 1035 (D. Nev. 1990). “430(1) also suggests that an action means a judicial action by stating: “[i]n that action, the judgment must be rendered for the amount found due the plaintiff, and the court, by its decree or judgment, may direct a sale of the encumbered property, or such part thereof as is…”

Carrington Foreclosure Servs., LLC v. Poletto (D. Nev. 2023). · cites it 4× “NRS § 40.462. 1 Further, the first party to record a claim or interest in a property generally has priority over 2 a later-recorded interest because Nevada is a race-notice state.”

W. Progressive - Nevada, Inc. v. United States of Am. (IRS) (D. Nev. 2019). · cites it 2× “After paying its 20 reasonable foreclosure expenses and its promissory note in full pursuant to Nevada Revised 21 Statute § 40.462(2), there was a surplus of $85,793.”

Colpo Caldo LLC v. Ronald Trunk (D. Nev. 2021). “6 Under 22 judicial foreclosure, “the judgment must be rendered for the amount found due the plaintiff, and 23 the court, by its decree or judgment, may direct a sale of the encumbered property, or such part 24 thereof as is necessary, and apply the proceeds of the sale as…”

Nat'l Default Servicing Corp. v. Joanne T. Orlando, et al. (D. Nev. 2025). “Plaintiff also brought a claim for declaratory relief to determine title to the 19 proceeds under NRS 40.462. (ECF No. 1-3). Plaintiff’s complaint its well-pled as it 20 identifies the defendants—CitiMortgage, the IRS, and Orlando—sets forth the claims for 21 relief, and…”

— Nev. Rev. Stat. § 40.462(1) — 1 case

— Nev. Rev. Stat. § 40.462(2) — 1 case

W. Progressive - Nevada, Inc. v. United States of Am. (IRS) (D. Nev. 2019). “After paying its 20 reasonable foreclosure expenses and its promissory note in full pursuant to Nevada Revised 21 Statute § 40.462(2), there was a surplus of $85,793.”

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