Which place’s debt rules apply—and who can help?

S_NE PASS-31 — Four bounded corrections to Nebraska nonjudicial trustee-sale PASS-27

Research date: October 26, 2026, Pacific / UTC Status: Focused correction for subsequent coordinator review; not independent review.

PASS-27 remains unchanged as a historical research record. This addendum replaces only the affected statutory qualifications, case descriptions, federal predicates, claim wording, source annotations, and coverage classifications.

PASS-28, PASS-29, and PASS-30 remain unreviewed and are not adopted as legal premises. All original PASS-27 hypothetical inputs, supported calculations, and unrelated research holds are preserved.

G1 — Statutory gateways and mandatory consequences

1. Section 76-1012: both payment branches require acceleration before fixed maturity

The opening condition of both §76-1012(1) and §76-1012(2) is that all or part of the principal secured by a trust deed has become due or been declared due before the obligation's fixed maturity date because of a breach or default.

The statutory gateway can include defaults involving installments, interest, taxes, assessments, insurance premiums, or authorized protective advances. A mere generic default, or an obligation already fully due at its scheduled balloon maturity, does not alone establish that this statutory pre-maturity condition exists. Nebraska Legislature

The existing $180,000 teaching example remains conditional on this statutory gateway:

Plain text

Unpaid principal:                   $180,000
0.5% × $180,000:                       $900
Greater of $50 and $900:               $900

Allowed trustee fee =
lesser of actual fees incurred and $900

Neither the $900 ceiling nor a timely request establishes that the full reinstatement amount was lawfully calculated or actually tendered.

A matured loan might have other payment, redemption, contractual, or equitable rights. This correction does not establish that a loan already at fixed maturity is immune from payment or foreclosure, or that no other right can exist.

2. Section 76-1006: precise farm-operations gateway

The extended two-month notice/reinstatement branch applies where the trust property:

• is used in farming operations carried on by the trustor; and
• is not in an incorporated city or village.

The covered notice must additionally disclose the two-month cure right, the entire unpaid principal, accrued interest through signing, per-diem interest thereafter, and principal not otherwise due absent default. Nebraska Legislature

This is not the same classification test as the Farm Homestead Protection Act's separate §76-1902 definition, which involves more than 20 acres, individual ownership, farming by the owner during a three-year lookback, designation, and other protected-real-estate criteria. Nebraska Legislature

The original statutory one-month and conditional two-month clocks remain unchanged. No individual calendar date is established.

3. Section 76-1008: notice requests and actual mailing contents

A third party seeking default and sale notices must record a duly acknowledged request after the trust deed is recorded and before the notice of default is recorded.

The request must supply:

• the requester’s name and mailing address;
• the original trust-deed parties;
• the deed's recording date;
• book/page or computer reference identifying that deed.

A request is a means of obtaining notices—not a lien, ownership claim, or recorded warning of such an interest. Section 76-1008(5) expressly says it does not affect title or constitute notice that the requester claims property rights. Nebraska Legislature

A junior interest holder’s bare assertion that it recorded a “request for notice” is insufficient until the acknowledgment, date, correct senior-deed identification, recording timing, and address are established.

4. Section 76-1011.01: mandatory conditional fee award

The original discretionary “may/can” wording must be replaced.

When a covered interpleader, declaratory-judgment, or similar action results from an objection to or uncertainty over proposed trustee-sale proceeds distribution, and the court enters judgment in favor of a trust-deed, mortgage, or other lienholder, and the objecting party lacked a good-faith reason, the court shall order that objector to pay the prevailing holder's reasonable attorney fees and court costs. Nebraska Legislature

This is not an automatic award for every objection or a general deficiency-action fee rule.

Separately, §76-1011(2) provides that trustee attorney fees and costs incurred in distributing proceeds are deducted before distributions to junior lienholders and surplus recipients, whether distribution occurs directly or through the specified court action. Nebraska Legislature

The original proceeds illustration remains:

Plain text

$300,000 − $8,000 − $220,000 = $72,000
$72,000 − $40,000 = $32,000
$32,000 − $25,000 = $7,000

$7,000 remains only a potential illustrative surplus, before unaccounted lawful distribution fees, disputed priorities, or other actual adjustments. No new entitlement is approved.

5. Section 25-1067: injunction security

Unless a special statute provides otherwise, an injunction does not operate until the applicant furnishes an undertaking with sufficient sureties, approved by the clerk, in the amount fixed by the issuing judge or court. The undertaking secures damages if the injunction ultimately should not have been granted. Nebraska Legislature

A court order alone is not a general statutory waiver of this security condition. Special statutory exceptions must be separately established; the actual injunction, bond, court approval, and operative stay remain unknown.

G2 — Correct case identities, facts, holdings, and pinpoints

The following replaces only PASS-27's affected case descriptions and related claims. Earlier opinion-access and screenshot statements remain attributed historical observations; the page images identified here were freshly inspected in PASS-31.

Corrected controlling-case matrix

Material holding corrections

Topp — original C039 and related guaranty language. The controlling rule is not that all guarantors are protected from all deficiency judgments or that every waiver is void. The mandatory §76-1013 judgment limitation governs when the sold trust deed secures the obligation, its power of sale is exercised, and a deficiency judgment is sought. The actual secured-guaranty clause was decisive. Justice Papik disagreed with the public-policy waiver holding; that dissent must remain separate from the majority. Nebraska.gov

Watson — original C042 and Example 3. The actual case involved both spouses signing; Shona's acknowledgment was defective on the instrument's face, but the Court found sufficient extrinsic acknowledgment evidence in the purchase-money context. The quoted earlier Prout v. Burke doctrine involves a nonsigning spouse. A hypothetical nonsigning spouse may therefore raise the purchase-money doctrine, but it is not Watson's own fact pattern. It is also not a universal rule curing every missing signature on a nonpurchase-money homestead encumbrance. Nebraska.gov

Gilroy — original C035 and deed-recital discussion. The opinion described §76-1010(1)'s recital protection as a potential affirmative defense for a qualifying bona fide purchaser or encumbrancer. Because no party asserted it, the Court expressly declined to determine its application. The substantive recital rule rests independently on §76-1010(1), not on a purported holding that the defense succeeded in Gilroy. Justia Law+1

Klein — original C036. Valid and previously recorded tax deeds had already divested the trust deed's title in the stipulated record. The buyers' inattention to that record defeated their claim for equitable relief. Klein does not hold that every trustee-sale title defect is unremediable, that every purchaser has actual knowledge of every defect, or that the specific result applies to an unproved tax deed or fraud claim. Nebraska.gov

First Nebraska Educators — original C014/C015. Statutory notice turns on whether the claimant was a party to the foreclosed trust deed or recorded a compliant request identifying that deed. Being a party to its own junior trust deed did not suffice. The trial dismissal was affirmed after review of the actual requirements. Justia Law

G3 — Federal coverage and timing refinements

1. Facially complete applications require a separate branch

PASS-27's statement that an incomplete application does not generally obtain full §1024.41 protection remains true only with this material qualification.

An application becomes facially complete under §1024.41(c)(2)(iv) when the borrower:

• submits all missing items identified in the servicer's acknowledgment notice;
• receives an acknowledgment identifying no additional missing items; or
• reaches the point when the servicer must issue the regulatory notice of complete application.

If the servicer later identifies additional information or corrections, it must promptly request them and temporarily treat the application as complete for §1024.41(f)(2) and (g) until the borrower has a reasonable opportunity to supply them. If supplied in that period, the application is treated as complete from its original facial-completeness date for the specified protections. If the borrower fails to complete within the reasonable period, the application becomes incomplete again. Consumer Financial Protection Bureau

A “50 days before sale” submission triggers acknowledgment duties when the loan and servicer are covered; acknowledgment does not depend on completeness. Whether the same submission also restricts filing or sale depends on facial/actual completeness, timing, exceptions, and other facts. Consumer Financial Protection Bureau

2. Duplicative-request exception requires both conditions

Section 1024.41(i) excuses a servicer from repeating the full process only where:

1. that servicer previously complied with §1024.41 for a complete application; and
2. the borrower has remained delinquent at all times since submitting that prior complete application.

A prior evaluation alone is not enough if compliance was incomplete. Nor does the exception automatically survive the borrower becoming current and later delinquent again. Consumer Financial Protection Bureau

Importantly, comment 41(i)-2 treats a transferor and transferee as different servicers. The transferee must address applications under the applicable rules, even if the prior servicer evaluated a complete submission. Consumer Financial Protection Bureau

3. Transfer continuity under §1024.41(k)

For a pending application transferred between servicers:

• rights and protections under paragraphs (c)–(h) ordinarily continue;
• original receipt dates matter;
• the transferee must obtain and account for previously submitted documents;
• a transferor-facially-complete application generally remains facially complete;
• separate acknowledgment obligations can apply if the initial notice was not issued;
• §1024.41(k)(2) can preserve protections even when final completion occurs 37 or fewer days before sale, provided the specified reasonable-date requirements are met;
• unresolved appeals have their own transfer rules.

The transfer date is the date the transferee begins accepting payments under the applicable transfer notice, not necessarily the private servicing-sale agreement's date. Consumer Financial Protection Bureau+1

No borrower-specific application status, completeness date, servicing history, transfer date, or foreclosure calendar is established.

4. Separate federal prohibitions and permitted intermediate steps

Under §1024.41(g), the three principal release conditions remain denial with any required appeal resolved or expired, rejection of offered options, or failure to perform an accepted option. Intermediate steps do not authorize the servicer to procure the prohibited outcome indirectly. Consumer Financial Protection Bureau+1

Nothing in these provisions guarantees any particular modification, settlement, or payment reduction.

5. SCRA: the court-order exception has a second required act

For a qualifying pre-service mortgage or trust-deed obligation still owed by a servicemember, 50 U.S.C. §3953 has separate branches:

The exception is not satisfied solely because a court issued a pre-sale order without the required return and approval. Section 3953(b)'s material-effect hearing/stay or adjustment branch is distinct from §3953(c)'s sale-validity rule. GovInfo+1

G4 — Source provenance, versions, and access boundaries

1. Case-source status

• Topp: The official Nebraska Supreme Court advance opinion was freshly read at the material pages above. It identifies a May 15, 2026 filing date, but this pass did not independently retrieve a later certified edition or complete subsequent-treatment report. Its majority decision is the authority used here; the dissent is not.
• Watson, Davey, and Klein: Official Nebraska court PDFs were freshly read and the cited pages visually inspected.
• Gilroy and Blair: The public sources reproduce the actual published opinions in HTML. Their reporter citations must not be mistaken for PDF page numbers.
• First Nebraska Educators: The supplied PDF alternative was successfully accessed and pages 315–316/PDF indices 7–8 were visually inspected. The coordinator's earlier failed HTML access remains historical; this pass also successfully read the HTML opinion. Neither event erases the other.
• Cardenas: Its PASS-27 material findings and pages 511–513/PDF indices 14–16 are preserved as dated earlier research, not relabeled as a fresh PASS-31 case reading.
• Blair: The Article III, §14 holding remains the only constitutional holding relied upon.

2. Federal-source version observations

The §1024.41 eCFR page was freshly opened in PASS-31 and displayed:

• Title 12 current through October 22, 2026;
• Title 12 last amended October 2, 2026.

The CFPB's complete operative §1024.41 body and official interpretations were separately read through the Bureau's public website. This independently establishes the current federal timing provisions used above. eCFR+1

The earlier coordinator-verified eCFR header observations for §§1024.30, 1024.31, and 1024.39 remain attributed to that review and are not misrepresented as new PASS-31 full-body reads.

For the servicemember provisions:

• The official GovInfo §3953 PDF was freshly read and page 998/PDF index 0 visually inspected. It contains the court-order and approved-return condition, but it does not display an OLRC Public Law 119-124 currency header.
• The official OLRC §§3918 and 3917 pages were freshly read and displayed currency through Public Law 119-124, October 15, 2026.
• The earlier §362 source-currentness observation remains dated PASS-27 reuse; bankruptcy law was not re-researched.

3. Statutory templates versus actual forms

The material statutory templates in §§76-1004, 76-1007, 76-1008, and 76-1012 were read as Nebraska Legislature HTML text. They are not evidence that any actual recorded substitution, default notice, notice request, sale notice, or cancellation complies.

The official Nebraska Judicial Branch Master Forms List was checked using the terms “foreclosure” and “trustee.” Neither yielded a match in that public listing. This is a bounded public-index search result, not a finding that no local, lender-specific, recorder, attorney-drafted, or other legally effective form exists. Nebraska Judicial Branch

S_NE-P31 source register

All fresh checks below occurred October 26, 2026, Pacific and UTC. No individual fetch timestamp is invented. Historical observations are identified separately.

One document's multiple sections and citations remain one source, not separate independent authorities. Search and index entries are not counted as controlling legal holdings.

Old-to-new claim crosswalk

The new claims below are the replacement or qualification units for PASS-27. They do not authorize rewriting unaffected original entries.

S_NE-P31 claim register

Four required correction workflows

Example A — Pre-maturity default versus matured obligation

Assumptions: A trust deed secures an obligation with $180,000 unpaid principal. No private ledger or tender is supplied.

Unchanged conditional trustee-fee arithmetic:

Plain text

$180,000 × 0.005 = $900
max($50, $900) = $900

Allowable subsection (1) trustee fee:
min(actual incurred trustee fee, $900)

A mathematical ceiling establishes neither a lawful amount demanded nor a completed tender.

Example B — Recorded notice request lacks acknowledgment or deed identification

Facts assumed: A junior creditor records a document captioned “Request for Notice” before the default notice. The document names the junior creditor but omits the senior trust deed's recording date. The acknowledgment is missing or cannot be authenticated.

First Nebraska Educators supplies an adverse example when required senior-deed identification is absent. It does not decide that every informal actual notice, separate deed-party status, or other independently required notice is legally irrelevant.

Example C — Watson facts versus a nonsigning spouse and Topp guaranty

All actual instruments, signatures, acknowledgments, title, occupancy, acquisition chronology, secured-obligations clauses and sale-route facts remain unavailable.

Example D — Disputed completeness, previous application, and servicing transfer

Hypothetical: A covered non-small servicer receives a submission 50 days before sale. It reports one document missing. The borrower later supplies the item listed in the acknowledgment. A new document is subsequently requested. A different servicer may take over. The previous application record is incomplete.

No modification entitlement, sale authorization, calendar date, or automatic stay is inferred.

Additional SCRA boundary example

An assumed servicemember has a qualifying pre-service obligation. A court order approving a sale exists, but evidence of a return made and approved by the court is unavailable.

Plain text

Prior court order:                 assumed
Return made:                      unknown
Return approved by court:         unknown
§3953(c)(1) exception:            not established

The existence of the order alone does not meet the complete statutory exception. A separately valid §3918 waiver could provide another branch, but no actual waiver is assumed.

Complete bounded coverage and residual gaps

Researcher self-check

Freshly read and inspected: Complete material operative clauses of Nebraska §§76-1012, 76-1006, 76-1008, 76-1011, 76-1011.01, 25-1067, 76-1010, and the narrow template and postponement provisions of §§76-1004, 76-1007 and 76-1009. The relevant majority bodies and PDF page images of Topp, Watson, Davey, Klein, and First Nebraska Educators were examined. The actual-opinion HTML bodies of Gilroy and Blair were read.

The complete material CFPB §1024.41 provisions and interpretations were read, including facial completeness, performing short-term plans, duplicative requests, transfer continuity, foreclosure-prohibition wording, and permitted intermediate steps. The §1024.41 eCFR currentness header was freshly verified. The GovInfo §3953 text and image and OLRC §§3918/3917 provisions were also read.

Dated rather than newly read: The previously reviewed Cardenas opinion, selected §§1024.30/31/39 currentness observations, and §362 source remain attributed earlier research. Prior PASS-27 researcher pixel-access claims are not relabeled as coordinator pixel review.

Numerical preservation check:

Plain text

$180,000 × 0.005 = $900
max($50, $900) = $900

$300,000 − $8,000 − $220,000 = $72,000
$72,000 − $40,000 = $32,000
$32,000 − $25,000 = $7,000

These figures remain hypothetical and conditional. The $7,000 potential surplus does not establish final distributable cash after every actual cost, lien and priority.

Not performed: No borrower, lender, guarantor, servicer, property, deed, note, recorded request, county recording, application, loan file, notice, auction, court case, military record, bankruptcy record or named party was accessed. No filing, contact, complaint, records request, account action, purchase, browser control, other-chat action or publication occurred. No local files were read or written, no hashes computed, and no complete session-law, citator or source-history audit was performed.

Final bounded disposition: PASS-31 corrects the pre-maturity gateway common to both §76-1012 payment branches, the exact trustor-operated farm exception, the formal §76-1008 notice-request and mailing requirements, the mandatory conditional proceeds-objection fee award, and the injunction-security exception. It also grounds the Topp, Watson, Davey, Klein, Gilroy and First Nebraska Educators rules in the proper facts and majority holdings, while preserving the important Regulation X facial-completeness, continuous-delinquency, transfer and SCRA protections.

All unchanged PASS-27 findings, original worked examples, actual-record limitations and pending legal questions remain preserved. No independent review, operational approval, publication readiness, component completion, Nebraska-state completion, parent acceptance or A066 acceptance is claimed.

END S_NE PASS-31.