2013 Nebraska Revised Statutes
Chapter 76 - REAL PROPERTY
76-1013 - Sale of trust property; deficiency; action; judgment; amount.

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, as hereinabove provided, 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.

Source

Laws 1965, c. 451, § 13, p. 1431.

Annotations

The phrase "sale of property under a trust deed" contained in this section clearly refers to the exercise of the power of sale conferred by the trust deed upon the trustee pursuant to the statutory authority contained in section 76-1005. Bank of Papillion v. Nguyen, 252 Neb. 926, 567 N.W.2d 166 (1997).

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).

A suit to collect on a contract that is from the foreclosed deed of trust is governed by the statute of limitations found in section 25-205, rather than the 3-month statute of limitations found in this section. Boxum v. Munce, 16 Neb. App. 731, 751 N.W.2d 657 (2008).

The 3-month statute of limitations in this section applies only when the suit for deficiency is on the obligation for which the foreclosed trust deed was given as security. Boxum v. Munce, 16 Neb. App. 731, 751 N.W.2d 657 (2008).