New Law Makes Foreclosure Process a Little Less Painful for Las Vegas Renters

In February of this year, I wrote an article addressing the plight of renters in the Las Vegas valley. The Las Vegas Sun had run an article detailing how many renters were facing the need to immediately vacate their homes, which had gone into foreclosure without their knowledge. (Click here to read my article http://vegasforeclosures.blogspot.com/2009/02/foreclosure-crisis-hits-renters-hard.html) In most cases, the renters had no idea that the owners of the property were in trouble until the Sheriff arrived on their doorstep to serve eviction papers.
A new law, passed May 20th and entitled the “Helping Families Save Their Homes Act of 2009”, provides safeguards for renters in the event that an owner allows a property to enter foreclosure. This protection comes in two forms. First, if the renters have a lease, the new owners of the property must honor the lease, allowing renters to stay in the property until the end of the term provided they remain in good standing. The only case in which this statute does not apply is in states where state law allows leases to be terminated at any time upon notice. Even in that case, the new owner of the property must intend to occupy the property as a primary residence in order to evict the tenants before the end of the lease. The second safeguard extends to renters who are on a month-to-month agreement. In this case, the new owner of the property (whether it be a bank or a private individual) must provide 90 days written notice to the tenants in order for them to vacate the property.
Many states already have laws protecting tenants in the case of foreclosure. In those states, the new Federal law will still supercede the state law, unless the protection afforded to the tenants under the state law is greater.
Of course there are conditions that must be met in order for the Helping Families Act to apply. The most notable are: 1. The tenants must have a written contract to rent or lease the property 2. The lease must be a result of an “arms length transaction.” 3. The rent must not be substantially less than current fair market rent for the property.
All things considered, I believe that this law represents a fair and equitable solution to the unfair situation in which many renters have found themselves since the foreclosure boom began.
If you are a renter, and you want to know if your landlords are current on their mortgage, you can often find that information on the County Assessor’s website. In the case of Las Vegas residents, the site would be www.accessclarkcounty.com/assessor. Once you are on the site, click on “record searches” then “addresses.” You will need to enter the full property address as requested. Once you have done this, you will receive a parcel number. Jot this parcel number down and then visit this site: www.accessclarkcounty.com/depts/recorder. Click on “search records” and then click on the “advanced search” tab. You will need to enter the parcel number (without any dashes) and hit “search.” The search will show you the name of the registered owner of the property and whether or not there are any documents filed against the property, such as a notice of default or a notice of sale.

Richard Lee Visits Las Vegas Real Estate Insider Club

The Las Vegas Real Estate Insider Club was pleased to host Richard Lee at our last meeting June 12th. Formally, Lee is Vice President, Public Relations Director, and a real estate consultant for First American Title Company of Nevada. But since 1989, Lee has also been the “go-to guy” for the Las Vegas community when it comes to development and growth. Developers, business owners, real estate investors and gaming companies rely on his insight for investment, lending and acquisitions. Simply put, Richard reduces a tidal wave of information into entrepreneurial opportunities.
At the meeting Richard spoke to the club on a wide variety of topics relating to real estate, the Las Vegas market in particular and the economy as a whole. He presented background information about what created this current economic crisis including insight into the sub-prime market, how notes are bought, debt is defused and property redistributed. And, although we may definitely be nearing the “bottom” of the real estate slide in Las Vegas, Richard explained how a factor called “Appraisal Drift” or “BPO Drift” may cause a continued downward slide in pricing of 1-2% over the next 12 months.
Richard offered his opinion, however, that Las Vegas is still a great place to purchase investment properties. He believes that jobs drive everything in local real estate economies by creating stability and growth. With sun, entertainment, great food and (now) housing prices below the curve, the outlook for the Las Vegas economy is strengthening. He also mentioned the fact that California may eventually approach a 60% total tax rate and, as a result, Las Vegas will continue to see population growth from those moving in from the west coast as well as baby boomers leaving other parts of the country.
Richard Lee also discussed an interesting phenomenon that is currently developing in Las Vegas real estate. As investors recognize the great buying opportunities that exist and rush to purchase properties at new, low prices…a certain “auction mentality” has begun to develop. Potential purchasers are finding themselves in multiple offer situations with properties selling above asking price. Those feeling that they have to get in now to avoid missing the boat are creating a dangerous over-bidding situation that could result in a second real estate bubble of sorts for the Las Vegas Valley.