Foreclosure in Las Vegas>Question Details

Roberta, Other/Just Looking in Lake Las Vegas, Hend...

My landlord told me today that he is letting his house go into foreclosure.

Asked by Roberta, Lake Las Vegas, Henderson, NV Fri Sep 19, 2008

He also told me that he had to miss three payments before the bank would do it. Is that true? He states that he has not missed one to date.I have 5 children and this puts me in a pickle. I tried the recorder and the county assesors office and no info was there.

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I cannot believe I am hearing this kind of advice from Devan. Just because the homeowner may be in default with their current mortgage, it doesn't give the tenant the right to stop paying their rent. Actually, that advice is terrible! First, it is illegal to not carry out your obligation to pay the homeowner rent that is backed by a contract (lease agreement). Second, you don't know the homeowner's situation. They may end up saving their home with a loan modification eventually. Who knows, they may end up going further into default towards foreclosure. It still doesn't relieve the tenant from their contract. I am dealing with one of my sellers and their tenants in this situation right now. The tenant decided to stop paying their rent while we are trying to avoid foreclosure and short sale the home. Now the seller is officially court evicting the tenant and may even sue them for breaching the lease. It is hard enough that the homeowner has to short sale their home while they are collecting rent due to their financial situation. By the tenant deciding to stop paying their rent, it puts even more of a burden on the homeowner. I am just amazed that someone in this profession would give such unethical and illegal advice...

Typically, most lenders will file the Notice of Default around the 3rd missed mortgage payment that becomes due. That is their minimum time frame that they can file this default notice. Then, in the state of Nevada, after the default notice is filed, the lender cannot post a foreclosure sale date to the property for a minimum of 120 days. So that basically leaves a minimum of 7 months of missed payments that the homeowner has to do whatever they decide to do. You can check the Clark County Recorder's website, not the Assessor's website to see if the Notice of Default has been officially recorded. When it is, that will give you a minimum timeframe of about 120 days before any sale date can be scheduled for the property.

I think you have also been very fortunate to find out from the homeowner that they are possibly moving towards foreclosure. It gives you a chance to check out your other options, such as finding another rental to move into. Most likely the homeowner will allow you to breach your lease and move out before your lease agreement ends. They will probably understand that you will be in a tough situation to find another rental.

I can help you stay in this rental if you would like. How I would do that is by speaking with the homeowner and finding out if they would be willing to do a short sale on the home. I specialize in short sales. Basically, a short sale is when the property is worth less than what the homeowner owes on their mortgage and they try to sell the property on the market to avoid foreclosure. Of course this requires their lender's approval because it will be considered a short payoff. It helps the homeowner avoid foreclosure (which is the worst thing you can have on your credit) and it would help you because we could find another investor that would love to keep you as a tenant. This way you wouldn't even have to move!

Run this by your landlord and let them know that I can help the entire situation. I specialize in short sales and have been very successful with them. Please feel free to call me at the number below and I would be happy to answer any questions and explain the process to you thoroughly. Hope to hear from you soon before it's too late to do this. Thanks for your time!

Len McGuirk, Realtor
Short Sale Specialist
Prudential Americana Group
Cell: (702) 203-6688
2 votes Thank Flag Link Sat Sep 20, 2008
Do not specify the number of missed payments that will have to occur before a notice of default is filed. It varies from lender to lender. I have seen a lender allow as many as 6 missed payments before filing the notice of default and an additional 6 months passed before the notice of trustee sale was filed. If he is not paying the mortgage then he should not expect to be paid rent. Stay in the home until the bank request you move. SAVE YOUR MONEY!!!! I can not stress ths enough. If you are paying $1,400 per month and are capable of living in the property for 6 to 12 months without making a payment then do so. Utilize the $7,000 to $14,000 you can save to either put down on another rental once you are asked to move or to use towards buying your own home. In actuality Ron is right. With the price of homes so low, now is a good time to buy. There are downpayment assistance programs that are based on median income determined by the number of people in the household. Some of them provide grants totaling as much as $30,000 that may not need to be repaid towards the purchase of a new home. If you qualify for a $200,000 home, and save $14,000 of your own money, plus receive an additional $30,000 you could avert this issue in the future by owning your own home. If you need some guidance in qualifying or finding available programs feel free to contact me.

Devan Reaves
North American Financial
2600 Paseo Verde Pkwy Suite 100
O: (702) 407-9335
F: (702) 407-0035
M: (702) 686-4819
1 vote Thank Flag Link Sat Sep 20, 2008

Please call me to discuss your situation more in depth. Like I stated below, I can help you and the homeowner resolve the issue and possibly keep you in the property as a tenant if you choose to. My direct cell is (702) 203-6688. I look forward to hearing from you!

Len McGuirk, Realtor
Short Sale Specialist
Prudential Americana Group
Cell: (702) 203-6688
0 votes Thank Flag Link Mon Sep 22, 2008
I'll have to agree with Len. Nevada law never relieves you of paying the rent. There are processes that you must go through if you are disatisfied with a rental, however, failing to pay your rent only puts you in a position that you can be sued by the homeowner. I can certainly understand the stress that this puts you under, but the homeowner may be in just as much stress trying to work things out. In addition to the homeowner being able to sue you, the last thing you want on your record is your failure to pay your rent. Whether you choose to find another rental or you choose to purchase something, failing to pay your rent is a black mark on your record. It will make it extremely difficult for you to find another rental and a lender won't even consider you. For your own sake, don't do it. Be consistent with your rent and work with the landlord to see what you can accomplish between the two of you. I would be happy to help, so please feel free to call me. Marilyn-348-7146
0 votes Thank Flag Link Mon Sep 22, 2008
This is extremely common right now. As Mike said you can consider yourself to be fortunate that you were told of this situation by your landlord. Most tenants do not find this out until the home just about ready to be sold at the trustee's sale.

You can check the county website to verify if the Notice of default has been filed yet. It it has not been filed then the time frame Mike gave below is correct. If indeed your landlord has not yet missed any payments this means you could stay in this home for six to seven months before you would be forced out. You should discuss this with your landlord and work something out so that your security deposit is used as your last months rent. This is critical since the landlord will probably not have the money to refund the security deposit to you after you move out.

You should be able to find another rental or you may want to look into buying a place of your own. The prices of homes are really affordable right now. There are also still programs available that might be able to get you into a home for no more out of pocket than what you would pay for your first months rent and your security deposit.

Keep my information and when you are ready I can help you find a new rental home or I can set up a free no obligation appointment with a Mortgage Professional who can go over those options with you.

I would love to set up a meeting with you and go over all your options for housing. I will gladly show you rental properties if that is the choice you decide to go with.

Ron Johnson
Elite Realty
0 votes Thank Flag Link Sat Sep 20, 2008
Hi Roberta,

Unfortunately this is a problem that is plaguing the Las Vegas area. Be thankful (if that is even possible), that you have been forewarned, that is far better than what most renters are facing these days.

Typically.....and please keep in mind that I'm saying typically........a Notice of Default will be placed on the property after 2 missed payments. From the time the Notice of Default is recorded, there is usually about 121 days from the recording date until the sheriff knocks on the door and kicks everybody out for the auction.

The best thing to do right now is get out of the situation you are in. Talk with your landlord and make an agreement that you will no longer pay rent until you find a property, and that you will keep the property in good condition while you are there.

If you really like the property you are living in, it is possible that a short sale situation could be worked out, and you may actually be able to buy the property from the landlord. Your landlord would need to be in contact with a REALTOR® that is very familiar with the short sale process. Although short sales are a huge long shot in being successful, it looks way better for the current homeowner to short sale rather than be fully foreclosed on, and you may be able to get the property at an incredible discount.

The key in these difficult situations is to have constant and consistent lines of communication open. Always look out for your best interests first and do what is necessary. If you have any questions, please feel free to contact me at anytime.

Best wishes with your difficult situation,

Mike Dobranski, REALTOR®
Prudential Americana Group, REALTORS®
Las Vegas / Henderson, NV

0 votes Thank Flag Link Sat Sep 20, 2008
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