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Old     (Meert)      Join Date: Mar 2010       12-13-2010, 11:49 AM Reply   
My wife and I moved to Nevada in May and have been leasing a home since then. We have a lease that takes us to May 2011. I received a Notice of Trustee's Sale on my door Friday morning. So after speaking to my landloard it looks like he is losing the home and it's set for public auction January 4 2011.
So my question, as a tenant do any of you know what I should expect going forawrd? We are current with our rent but will not be paying the landlord in January as he will no longer own the home. Should we reach out to the bank that holds the mortgage and offer to pay them the rent owed?
I was also thinking about going to the auction to see if it sells or goes back to the bank.
Any thought or advice would help.

Last edited by Meert; 12-13-2010 at 11:51 AM. Reason: spelling
Old     (barry)      Join Date: Apr 2002       12-13-2010, 12:10 PM Reply   
I wouldn't default on your obligation to the landlord until he is no longer the legal owner of the home. I also wouldn't pay rent to the bank while you have an obligation to the landlord. That could really complicate matters. I wouldn't change a thing until you're forced to. At that point I would either move on or sue for breach of contract.
Old    SamIngram            12-13-2010, 12:13 PM Reply   
Quote:
Originally Posted by Meert View Post
My wife and I moved to Nevada in May and have been leasing a home since then. We have a lease that takes us to May 2011. I received a Notice of Trustee's Sale on my door Friday morning. So after speaking to my landloard it looks like he is losing the home and it's set for public auction January 4 2011.
So my question, as a tenant do any of you know what I should expect going forawrd? We are current with our rent but will not be paying the landlord in January as he will no longer own the home. Should we reach out to the bank that holds the mortgage and offer to pay them the rent owed?
I was also thinking about going to the auction to see if it sells or goes back to the bank.
Any thought or advice would help.
In Nevada the bank will most likely be the only person at the sale to bid. The property will most likely go back to the bank with a Trustees Deed Upon Sale and the bank will be the new owner.

Most banks are not selling their properties immediately because they can't afford the write down/or loss on their books, so they are holding the properties versus letting them go for a huge discount. If the bank can keep a tenant in the property who is already in the property they will most likely do so. This helps secure their property from vandals and people stealing stuff.

Contact the bank and make sure to get everything in writing.

Nevada Foreclosure Law

Also check here.

Also a new federal law was passed in 2009 to protect renters in the case of foreclosure.

Also, make damn sure you know where your deposit is and who is responsible to pay it back when you move...
Old     (bigdtx)      Join Date: Feb 2005       12-13-2010, 12:15 PM Reply   
if it sells at auction you could be out on your ass in no time. I'd get the hell out. The landlord isn't going to do anything - he's been pocketing your rent and not paying the mortgage. It takes months to get to the "tag on the door" phase - he's been taking you for a ride for a while.
Old    SamIngram            12-13-2010, 12:39 PM Reply   
Quote:
Originally Posted by bigdtx View Post
if it sells at auction you could be out on your ass in no time. I'd get the hell out. The landlord isn't going to do anything - he's been pocketing your rent and not paying the mortgage. It takes months to get to the "tag on the door" phase - he's been taking you for a ride for a while.
Huh? How has he been taking him for a ride for a while? In most standard leases, the landlord has no obligation to pay a mortgage with the tenants money, only maintain title. He is living in the property, correct? Federal law says he has at minimum 90 days after the sale has taken place and possibly through the term of the lease.
Old     (Meert)      Join Date: Mar 2010       12-13-2010, 12:37 PM Reply   
We knew going int o the lease that he was trying to mod the loan. I have spoken with him 2 times since Friday and if the sale goes down or the bank takes back the note he will give us the deposit back on the 4th. I'm not to worried about him, he just got caught holding on to to many properties.
There was also a notice to tenants of the property on teh door and since we are in a year lease paid monthly we will have 60 days notice regardless of what happens.
Barry, We are paying him through the 4th so we are not defaulting on our lease to him.
Sam, thanks for the links.
Old     (wake77)      Join Date: Jan 2009       12-13-2010, 1:00 PM Reply   
NO CJ, stay where you are. You are in primo position, as a matter of fact, if the bank takes control of the property you will probably be better off than leasing from your current landlord. As Sam mentioned, the bank would rather have someone living in the property as opposed to it sitting vacant for an extended period of time.
Old     (guido)      Join Date: Jul 2002       12-13-2010, 1:27 PM Reply   
I've done some reading on this lately and agree with Jeremy and Sam. In many cases tenants have better protection than home owners in the case of the foreclosure. You might be able to negotiate a new lease with the bank, and like Sam said, you have 90 days guaranteed. There are so many properties that are empty right now that it's likely that the bank would rather have someone in the home than have it sit vacant.
Old     (Meert)      Join Date: Mar 2010       12-13-2010, 5:16 PM Reply   
Sweet. That sounds good to me. We are also thinking of buying it as our payment would drop by $400 if we bought it, but we are not sure how long we will be in the Reno area.
Thanks for all of your input.
Old     (deltahoosier)      Join Date: Jun 2002       12-14-2010, 12:01 PM Reply   
Just remember, you also have to adjust for the current federal tax write off when you buy. That will lower your overall effective payment as well.
Old     (Meert)      Join Date: Mar 2010       01-26-2011, 11:46 AM Reply   
So here is an update with yet another question. The home sold on the steps of the courthouse, no biggie as I went to see who bought it and offered to buy it from him. He said yes and we are set to close in the next few weeks. So it worked out in our favor.

The issue is with the old landlord, he had a $1400 security deposit of ours. I contacted him to get it back and he comes back with what do you want to do about the fridge as it's his private property. We agree on a price and he says he will take it out of the deposit and "make his calcuations" and send me the differance. I get a check yesterday for $149 claiming pro-rated rent through the 18th. My question is this, property sold on the 4th and title was recorded on the 18th, is he entitled to that 18 days? Also in our lease there is a paragraph that outlines the deposit and in no way is it to be used under any condition for rent owed. How should I handle this?

Last edited by Meert; 01-26-2011 at 11:48 AM. Reason: spelling
Old     (95sn)      Join Date: Sep 2005       01-26-2011, 12:11 PM Reply   
Thats odd that it states it cant be used for past due rent. In CA it is the 1st thing our contracts state that it CAN be used for is past due rent...repairs beyond normal wear and tear.... It does state a tenant cannot use the security deposit in lieu of last months rent. I might question the ability of the landlord to collect while not paying his mortgage. I believe its going to be a small claims court issue.
Old     (psudy)      Join Date: Dec 2003       01-26-2011, 12:27 PM Reply   
If title transfered on the 4th, it was no longer his house. If it was just under contract and finalized the 18th, you owe.
Old     (Meert)      Join Date: Mar 2010       01-26-2011, 2:44 PM Reply   
Sold and paid for in cash on the 4th on the courthouse steps, title was not recorded until the 18th.
Old     (Riteride)      Join Date: Sep 2010       01-26-2011, 2:54 PM Reply   
I find houses that are trying to get their loan modified or in forclosure and pay less then what they were renting the house for and most houses end up getting sold at auction. Then what happens is I take cash for keys. The last two houses I got $3500.00 each time to move within 30 days.
Old     (psudy)      Join Date: Dec 2003       01-26-2011, 2:54 PM Reply   
Recorded and transfered are two different things. The date the title transfered is what you need to concentrate on.
Old     (Meert)      Join Date: Mar 2010       01-26-2011, 3:02 PM Reply   
The title report does not say when it transfered only when it was recorded. Either way out contract states deposit in no way can be used for any rents. The guy is a bum and if he needs $1075 that bad just tell me and you can keep the money as the headache is so not worth it.
Old     (psudy)      Join Date: Dec 2003       01-27-2011, 8:49 AM Reply   
The deed should have a date when signed. Title work is simply insurance protecting the buyer on the transfer. It is not required to transfer assets. It sounds like its a moot point anyway though.
Old     (shawndoggy)      Join Date: Nov 2009       01-27-2011, 10:07 AM Reply   
CJ, are you in Reno or LV? I'm a lawyer in Reno and would be happy to discuss strategy with you, and if you are in LV, I can get you a good referral. PM me and I'll shoot you my phone number...

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