There’s help for renters in foreclosed property
Q: I have so many questions I don't know where to start. First, the story is that we rent a home in Reno from a landlord that we have had for two-plus years. We have a great relationship with him, pay rent on time, keep the home in great shape and were blindsided this morning when we received a foreclosure notice. He (the landlord) came to the property and tried to reassure us that he is working with the bank and trying to keep all as normal. So here is where the questions begin.
Anywhere that we can get free legal advice? Do we continue to pay the landlord rent? How do we find out information about the ownership of the property or status of foreclosure? Is our deposit going to come back to us? Does the Protecting Tenants at Foreclosure Act of 2009 apply? (Our lease stays intact until it is over?)
I can't think of anymore at the moment, but any suggestions, help, or advice you can give would be greatly appreciated.
-- Daniel C., Reno
A: First of all, I'm sorry to hear about this unpleasant situation. Unfortunately, we've been hearing about far too many of these surprise foreclosure notices in the past few years here in Nevada.
Let me start by answering as many of your questions as I can. Then, since I'm not an attorney, I'll conclude by suggesting a few legal resources where you might be able to find more help.
I can at least assure you that you do have rights, even though you should continue to pay your rent as long as you're living in the home.
By law, your landlord must also return to you all applicable deposits you may have paid, assuming you have complied with the terms of your lease. Nevada law requires security deposits to be returned within 30 days after you move out, or to be transferred to the new owner. If not, tenants can sue landlords for double the amount of the security deposit.
In fact, if you haven't done so already, your first step should be to locate and review your lease.
To find out whether or not your residence is in foreclosure, you can access free public records from your local county recorder.
You can usually access property records through the websites of your county recorder and assessor.
Your county recorder's office should have a notice of default initiating the foreclosure process and other foreclosure notices required by law.
You can also find transfer of title documents showing who owns the legal title to your residence. To access all this information, you may need the parcel number of your property, which you can usually get from the county assessor's office and its website.
As for the Protecting Tenants at Foreclosure Act you mentioned, you may want to seek the advice of a qualified attorney to see how this applies to you. According to the website for Nevada Legal Services, this federal law "applies to any property after foreclosure. It requires the new owner to provide at least 90 days notice before any eviction. If you have a lease, the new owner must honor your lease, except if the new owner will be moving in. Then, only 90 days notice is required and the new owner does not have to honor your lease."
Here are some suggested sources for free or low-cost legal services in Nevada:
Nevada Legal Services, www.nevadalawhelp.org or www.nlslaw.net. This nonprofit organization has offices in Reno and Las Vegas. Its services include helping Nevadans with disputes between landlords and tenants.
Consumer Credit Counseling, www.cccsnevada.org. This nonprofit organization is approved by the federal department of Housing and Urban Development. It operates statewide and serves homeowners like your landlord, as well as renters.
I hope this helps. For more information on local real estate issues, consult a qualified local Realtor or visit lasvegasrealtor.com.
Rick Shelton is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 20 years. GLVAR has 12,500 members. To ask him a question, e-mail him at ask@glvar.org. For more information, visit lasvegasrealtor.com. Questions may be edited for space and clarity.
