What are renters’ rights when home is in foreclosure?

Q: I was informed that my townhouse is going through foreclosure, but my landlord claimed he's getting a loan modification. What about the eviction process if the landlord can't get the new loan? Do I have to continue to live here even after the foreclosure since I have a lease?

A: There is a federal regulation, which will expire at the end of 2012, that requires the sending of a 90-day notice to the tenant to vacate from the premises.

Our state law, which was passed after the June, 2009 session, requires a 60-day notice to the tenant. The federal law takes precedence.

AB 140 states that a tenant or subtenant is to be provided notice within three business days that his or her residential unit is being foreclosed by the lender. The notice is to state that the tenant may terminate his or her lease and move out or remain and possibly be evicted under Chapter 40 (after the expiration of the notice).

If the tenant fails to pay rent or fails to perform any other obligations of the lease agreement, the tenant will be subject to a eviction notice prior to the expiration of the 90-day period. During this 90-day period, the new owner has the same rights, obligations and liabilities of the previous owner under NRS 118A (the landlord tenant act) and under the lease or rental agreement that the previous owner entered into with the tenant.

The tenant can vacate from the property prior to the expiration of the notice period without any obligation to the new owner. In this case, the tenant would not be require to give the new owner 30-days notice.

Q: We have tried to locate lien forms for homeowners who are seriously delinquent in their assessments. NRS states that we may file a lien on the property for up to six months assessments. Can you advise us where we may purchase these forms?

A: There has been a change in the State law that now allows a collection of the past nine months as opposed to the past six months.

NRS 116.3116 states there is an exception to the law that the period could be shorter than nine months but not less than six months if there are federal regulations adopted otherwise by the Federal Home Loan Mortgage Corp. or Federal National Mortgage Association.

In order to place a lien on the property, an association has specific requirements to follow, as for example, an intent to file a notice of delinquent assessment must be sent to the homeowner before a lien can be filed.

There are office or legal supply stores that may have a lien form that may meet the requirements.

However, with the changes in the law and the need for accuracy, it is not prudent for an association to file their own liens. There are many collection companies who specialize in homeowner associations where the collection companies charge the delinquent homeowners their legal fees and not the association.

You need to discuss this option with your board. There have been a number of lawsuits filed against associations because of improper liens on homes.

Barbara Holland, CPM, and Supervisory CAM, is president of H&L Realty and Management Co. To ask her a question, e-mail support@hlrealty.com. To view a power point presentation of the new laws that were recently passed affecting HOAs, visit hlrealty.com, click on press release button on the left side, then click on article title, "The 2009 Legislation for common interest communities."