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Are You Renting A Residence
Which Is Being Foreclosed Upon?
 Under
current Nevada state law, if you are renting a dwelling unit which is foreclosed
upon, you may be served with a notice requiring you to leave within 3 days. If
you do not leave the new owner can file an eviction action against you.
Effective 5/20/09, a new
federal law grants you important new rights. On that day, President Obama
signed the Helping Families Save Their Homes Act of 2009, S. 896, P.L. 111-22.
This bill includes a nationwide 90 day pre-eviction notice requirement for
tenants in foreclosed properties.
Can the person, bank or other
institution who buys the building at foreclosure make me leave right away?
No. The new owner needs to
end your tenancy by giving you a 90-day notice to leave. If you have an
unexpired lease, you may be able to stay until the end of the lease.
What can I do if the new
owner says I have to leave in less than 90 days?
You can send a letter telling
the new owner about the law. See the sample letters below.
Keep a copy of the letter you
send. It may help to go to the post office and pay for a return receipt to make
the new owner sign to prove they got your letter. If you get in the mail a
green receipt signed by the new owner, save that receipt.
You must also offer to pay
the new owner your rent and live up to the other terms of your lease.
What can I do if the new
owner serves me with a notice to leave within 3 days?
You should contact a lawyer
immediately. If you cannot afford one, call Nevada Legal Services at
702-386-0404
If you unable to contact a
lawyer, call the new owner immediately. Tell the new owner about the law and
say that you are entitled to at least a 90 day notice. State that if the new
owner tries to evict you that you will defend based on the new law.
What happens if I don’t pay
the new owner rent or violate other terms of my lease?
If you are late with your
rent, the new owner can send you a notice giving you 5 days to pay, move or file
an affidavit with justice court explaining that that you have a legal excuse not
to pay. If you violate other terms of your lease the new owner can send you a
notice stating that you either “cure” the breach of the lease or move within 5
days. If you don’t cure and have not moved within 5 days, then the new owner
can send you a notice giving you 5 days to move or file an affidavit with
justice court explaining that that you have a legal excuse not to move.
What if I do not want to stay
90 days or for the remainder of my lease?
You may be able to negotiate
with the new owner to allow you to move early. Many banks which foreclose may
offer you to do so under a “cash for keys” option.
Starting 10/1/09, a new
Nevada law will allow you to move at any time after the owner has received a
“notice of default and election to sell”.
Prior to10/1/09, you may
incur liability for unpaid rent if you move early. Normally you must give a 30
day notice to terminate a month to month tenancy. If you have a lease its terms
will control.
What if I have a one-year
lease that has more than 90 days left?
In most cases, the new owner
cannot evict you until the end of the lease. There are two exceptions.
If the new owner wants to use
your home as their primary residence, the new owner only has to give you a
90-day notice to leave after they become the owner.
If you do not pay your rent
or violate other terms of my lease the new owner may evict you as described
above.
What can I do if the new
owner serves me with a summons and complaint asking a court to evict me?
You should contact a lawyer
immediately. If you cannot afford one, call Nevada Legal Services at
702-386-0404
If you unable to contact a
lawyer, go to the Clerk of the court on the summons and complaint immediately.
File an answer with the court that says the new owner failed to give the notice
required by the Protecting Tenants at Foreclosure Act, Pub. L. No. 111-22, §702
(2009).
Go to court on the date the
court sets for a trial.
• Take with you to court:
1. the copy of your letter to
the new owner.
2. the green return receipt,
if you received on.
3. the copy of the new law
that is attached to this notice.
4. A copy of your lease, if
you have one.
What can I do if a sheriff or
constable arrives at my door to evict me?
Tell the sheriff or constable
that you received no eviction notices and that you were not served with a
summons and complaint. Ask for time to go to court to get the order evicting
you set aside.
You should contact a lawyer
immediately. If you cannot afford one, call Nevada Legal Services at
702-386-0404
If you unable to contact a
lawyer, go to the Clerk of the court on the eviction order immediately. Say that
you want to file an emergency motion to vacate the eviction order.
What happens to my security
deposit?
The previous owner is
required by NRS 118A.244 to either (a) return your security deposit or (b)
transfer it to the new owner. Frequently, however, that return or transfer does
not take place. However, in any cases the new owner “has the rights,
obligations and liabilities of the former landlord as to any securities which
are owed at the time of transfer”.
What if I am a Section 8
tenant?
You have all of the rights
listed above regarding your lease and the requirement that the owner give you a
90-day notice to leave.
You also have additional
protections.
The Section 8 Housing
Assistance Payment contract continues.
The foreclosure is not a
lawful reason to terminate your lease.
Call your Section 8 worker
and tell the worker what is happening.
What if I have additional
questions about my rights under the new law?
If you have any questions,
please call the local Nevada Legal Services at 702-386-0404
Sample
Letters
Sample
Letter for Non Section 8 Tenant to Send to New Owner
Date:
_________________
To:
_________________
_________________
_________________
Dear
Landlord,
I am
writing this letter in response to the notice of termination dated _________.
The Protecting Tenants at
Foreclosure Act, Pub. L. No. 111-22, §§ 701-704 (2009), which became law on May
20, 2009, applies to state eviction proceedings. This act requires that a new
owner who took title to residential rental property through foreclosure must
honor existing leases until the end of the lease term. There are three
exceptions to this rule: 1) if there is an existing term lease and the new owner
wants to occupy the foreclosed property as a personal residence before the end
of the lease term, 2) if there is an existing term lease with less than 90 days
to the end of the lease term, or 3) if the existing lease on the foreclosed
property is a month-to-month tenancy or a tenancy at will. In each of these
cases, the owner must provide the tenant at least 90 days notice to terminate
the tenancy.
Because
the notice sent on __________does not comply with this law, I ask that you
rescind (withdraw) the notice.
Sincerely,
________________
Tenant
name
Sample
Letter for Section 8 Tenant to send to the Landlord
(Name
and address of tenant)
(Name
and address of owner)
_________________
_________________
_________________
Date:
Dear
Landlord,
I am
writing this letter in response to the notice of termination dated _________.
The Protecting Tenants at
Foreclosure Act, Pub. L. No. 111-22, § 702 - 703 (2009), that became law on May
20, 2009, applies to state eviction proceedings. This law requires a person or
entity who acquires ownership of residential rental property through foreclosure
to take subject to (be legally bound by) the Section 8 voucher lease and Housing
Assistance Payments (HAP) contract. A new owner can only terminate the lease and
HAP contract by giving the tenant at least 90 days notice of termination prior
to the end of the lease. If the Section 8 lease and HAP contract have less than
90 days remaining in their term, or if the new owner who takes title at
foreclosure wants to occupy the premises as his or her personal residence, the
new owner may terminate the lease only after giving the tenant at least 90 days
notice of such termination.
Because
the notice sent on __________falls short of the 90-day notice required by law, I
ask that you rescind (withdraw) the notice.
Sincerely,
________________
Tenant
name
Other
resources:
http://foreclosurehelp.nv.gov/Renters.html |
