Golden Real Estate & Investments, LLC
8335 W. Flamingo Rd.
Las Vegas, NV 89147
If a tenant signs a lease, they are then protected with certain provisions. If the home is sold to a owner occupied buyer, they have 90 days to move out regardless of the term of the lease. If an investor buys the home, the will have to assume the term of the lease. Many times, with the short sale process taking time, the tenant does stay for the term of the lease.
I would, as a property manager, have to disclose the situation to prospective tenants and tell the owner his obligations as well as the tenants. Paul is correct in that if a notice of default is filed prior to the rental agreement, then it gets in to fraud, and voiding of contracts and all kinds of messy law problems. I would consult with professionals prior to renting the home.
Its always good idea to speak to a CPA regarding tax consequinces.
For more information contact me at 702-612-7099 or email me at email@example.com
An owner/landlord has the right to do with the property what they want. They have the right to rent out their home, regardless if they are not honoring the payment of their mortgage.
As a tenant, you might be able to purchase the home, should it be foreclosed. You might be able to lease month to month until it is sold. Again, that is determined when a NOD (notice of default) was filed.
As long as it is disclosed to all parties involved upfront what the situation is. The owner still has right of ownership on the property and we still be able to collect rents on the property. I myself have never seen a bank ask the owner to give up the rents to the bank.
The only time I seen banks collect rents is when they have ownership of the property and they have rented it out.
Barrett & Co., Inc.
Also.. If its an owner-occupied mortgage, the the owner may not qualify for a short sale with a tenant in place.
In the end, we're seeing cash for keys for tenants even in short sales.