How to Exercise Your Right to Cure a Mortgage Default in Nebraska

Understanding the Right to Cure in Nebraska

Falling behind on your mortgage is terrifying, but under Nebraska law, your lender cannot instantly demand the entire balance of your loan just because you missed a few payments. Under Neb. Rev. Stat. § 76-1012, you possess a statutory 'Right to Cure.' This gives you a strict 1-month window to catch up on your missed payments and effectively hit the reset button on your mortgage. Navigating the exact amounts and preventing bank errors can be complex, so finding an experienced local lawyer through our directory is highly recommended.

Calculating Exact Arrears vs. Full Payoff Amounts

There is a massive difference between a 'reinstatement quote' (the cure amount) and a 'payoff quote'.

• The Cure Amount (Arrears): This includes your missed monthly payments, accrued late fees, and the reasonable legal costs the trustee incurred to record the Notice of Default. Paying this amount stops the foreclosure entirely.
• The Payoff Amount: This is the entire balance of the loan, plus all fees and interest.

During the 1-month statutory cure period, the bank is legally required to accept the cure amount. You should immediately contact your servicer and request a written reinstatement quote to see exactly down to the penny what is owed. Never guess the amount, because being short by even a few dollars can result in the bank rejecting your payment.

Allowable Payment Methods

When you are ready to cure the default, you cannot simply mail a personal check. Because time is of the essence, personal checks can bounce or be held by the bank, putting you past the 1-month deadline. You must use certified funds. Acceptable methods usually include:

• Cashier's checks from a local bank
• Certified bank checks
• Direct wire transfers

Always send the certified check via overnight delivery with a tracking number (such as USPS Priority Mail Express or FedEx) directly to the address specified on your reinstatement quote. Keep a copy of the check and the delivery confirmation receipt as your absolute proof of payment.

Challenging Inflated Servicer Fees (Junk Fees)

Unfortunately, some mortgage servicers try to pad the cure amount with unlawful junk fees, such as excessive property inspection fees, inflated attorney costs, or double-billed late fees. While Nebraska law allows the trustee to collect 'reasonable' costs, they cannot exploit you. If the quote seems artificially inflated, a lawyer can utilize the Real Estate Settlement Procedures Act, 12 U.S.C. § 2605 to send a formal Notice of Error or Request for Information to the servicer. Under federal law, the servicer must acknowledge your inquiry and correct billing errors, but you must act quickly so you do not miss your 1-month Nebraska state deadline.

What to Do if the Lender Rejects Your Cure Payment

Sometimes, a lender makes an administrative error and wrongfully rejects a valid, on-time cure payment, pushing the property toward a Notice of Sale. If this happens, you must take immediate legal action. Your attorney can file a lawsuit and request an emergency injunction to stop the sale. This is typically filed in the local district court where the property sits, such as the Sarpy County District Court, Papillion or the Hall County District Court, Grand Island. Because Nebraska district courts do not provide a standardized template for foreclosure injunctions, your attorney will file an individualized Complaint for Injunction along with an application for a temporary injunction or temporary restraining order under Neb. Ct. R. Pldg. § 6-1108 and Neb. Rev. Stat. § 25-1062 et seq., explicitly demonstrating your proof of certified payment and tracking records to show the judge you legally exercised your right to cure under state law.

Frequently Asked Questions (FAQ)