Fair-market-value cap on a deficiency
Neb. Rev. Stat. § 76-1013
In plain words
If a lender sues for a deficiency after a Nebraska trustee sale, the court must find the property’s fair market value on the sale date, and the judgment cannot exceed the debt (with costs) minus that value.
Who is protected
Borrowers sued for a deficiency after a Nebraska trustee sale.
When it applies
- Only in Nebraska.
- Only after the foreclosure sale.
What you can do
Gather value evidence
Appraisals and comparable sales can lower a deficiency.
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Honest limits
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- State lawDeficiency — fair market value
Neb. Rev. Stat. § 76-1013
What it says: The court must find fair market value and limit the deficiency accordingly.
Read the official texthttps://nebraskalegislature.gov/laws/statutes.php?statute=76-1013
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to reinstate within one month of the notice of default
Neb. Rev. Stat. § 76-1012(1)
After a notice of default is recorded on a Nebraska trust deed, you have one month (two months for some farm property) to pay what is due — as if there had been no acceleration — plus allowed costs. The trust deed is then reinstated.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightPossible claim for lost equity after a tax deed (post-Tyler)
Cont'l Res. v. Fair, 317 Neb. 391 (2024)
After Tyler v. Hennepin County, the Nebraska Supreme Court held that an owner whose property was taken by tax deed for a much smaller debt may pursue a takings claim for the lost equity (Continental Resources v. Fair, 2024). Nebraska’s statutes on surplus after a tax deed were not reviewed in this pass.
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