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Home » Self-Help » Evictions & Housing » Eviction Issues Related To Foreclosure » Renting A Property In Foreclosure

Renting A Property In Foreclosure

For tenants, learn how to find out if the house you are looking at (or living in) is in foreclosure.  For landlords, learn your obligations to disclose a foreclosure to a prospective tenant.


Overview

Given today's housing market, there is a fair chance that the house you just saw listed for rent in the newspaper, or online, or on Craigslist, is in foreclosure.  As long as the house has not been sold at a trustee's sale, the owner has the right to rent the house – even if it is in foreclosure – so long as the owner discloses the foreclosure to a potential tenant.

  • So if you are a homeowner who is trying to rent your house, read below to find out about your obligations to disclose any foreclosure proceedings to the tenant or you could be facing a lawsuit!
  • If you are a tenant who is looking to rent a house, investigate before you rent!  Follow the instructions below to find out if the house you are looking at is already in foreclosure.
  • If you are a current tenant and the house you are renting has gone into foreclosure, read below to find out about your right to terminate your lease and leave.

CAUTION!  Foreclosure proceedings are not the only thing you need to be cautious about when renting a house.  Bad people are taking advantage of the large number of empty foreclosed or abandoned homes in Las Vegas and are renting those empty houses to unsuspecting tenants – even though they are not the owners or agents and have no right to do so!  Follow the instructions below to identify the legal owner of the rental property.  Ideally, you should deal only with the owner (check his or her identification) or a reputable real estate or property management company (call the Las Vegas Association of Realtors, 702/784-5000, or the Southern Nevada Better Business Bureau, 702/320-4560, for example, to check out the company).  Don't give money to anyone unless you're sure who you're dealing with!


Q&A - Renting and Foreclosure


Is a landlord obligated to disclose foreclosure proceedings?

If you are a homeowner who is renting a property that is in the foreclosure process, Nevada law requires you to disclose in writing to a prospective tenant that the property to be leased is subject to foreclosure.  (NRS 118A.275(1).)  A willful violation of this requirement is a "deceptive trade practice" for which you could be sued by the prospective tenant or the Nevada Attorney General.  (NRS 118A.275(2); NRS 41.600(1)-(2)(e); NRS 118A.0963.)  If you are sued, you could be held liable for any damages the prospective tenant sustained, equitable relief that the court deems appropriate, and the prospective tenant's court costs and attorney's fees.  (NRS 41.600(3).)

FYI!  To learn more about the foreclosure process, click to read Overview of Foreclosure and Mediation.

How can you find out whether a house is in foreclosure?

Knowing whether a prospective rental property or your current rental property is in foreclosure can be very important.  Even though you may pay your rent consistently and on time, if your rental unit is foreclosed upon, the new owner might still try to evict you.

FYI!  Tenants who are living in a house that is sold through foreclosure do have some legal protection.  For more information, read Evicting a Tenant After Foreclosure.

Although state law now requires a landlord to disclose in writing to a prospective tenant if the property to be rented is in foreclosure, landlords do not always comply with the law.  Additionally, there is no similar obligation to disclose foreclosure proceedings to a current tenant (although you should see notices regarding the foreclosure posted on the property).  But with very little effort you can find out for yourself whether a rental property is in foreclosure.

To find out if a house is in foreclosure–

  1. Get the address of the rental property.  If it is not in the rental ad, call and get it.  Or better yet, set up an appointment to look at the house.  That way you will be sure the address you are given is accurate.
  2. Go to the Clark County Assessor [http://www.clarkcountynv.gov/assessor] website.
  3. In the left-hand column, click on "Property Records."
  4. Under "Search/Real Property Records," click on "Address."
  5. Enter the address of the property you want to search and click "Submit" to see a listing with the exact address.  (When you enter the address, the house number, street name, and street type are entered on separate lines.  If you do not know what town the rental is in, leave it unspecified.)
  6. Click on the “parcel number” to the right of the address you are looking for.  Write down the parcel number – you will need it.  (The assessor's information displayed lists the current owner of the property and the owner's mailing address.  You may want to print this page for your reference.)
  7. Go to the Clark County Recorder [http://www.clarkcountynv.gov/recorder] website.
  8. In the left-hand column, click on “search records.”
  9. In the left-hand column, click on "Parcel #" and enter the parcel number that you wrote down into the search field.  (You can choose to see all document types or, under “Category,” select only foreclosure documents.)  Click "search."
  10. This will give you your search results and will show all documents that have been recorded against that particular parcel number.  The documents that have been recorded most recently are listed last.   This should show whether or not a Notice of Default and Election to Sell has been recorded (meaning that the homeowner is delinquent in the mortgage payments) and whether a Notice of Trustee Sale has been recorded (meaning that the home is going to be sold at auction).  If these documents are not listed, you may want to check back on a weekly or monthly basis.
  11. If you see something that might be a default, or you want more information, write down the instrument number and take it with you to the county recorder's office (Clark County Government Center, 500 S. Grand Central Parkway, second floor, Las Vegas, Nevada, 702/455-4336).  The staff there can help you find what you are looking for.

For a printable version of these instructions, click on the link below:
How to Find Out Whether a House Is in Foreclosure

Can a tenant terminate the lease if the rental property goes into foreclosure?

Under Nevada law, at the same time the trustee serves a Notice of Default and Election to Sell (which means that the homeowner is delinquent in the mortgage payment), the trustee must post and mail a written notice to the tenant or any subtenant in occupation of the premises, informing the tenant that he or she can either (1) terminate the lease or rental agreement and move out or (2) remain and possibly be subject to eviction proceedings.   (NRS 107.087(3).)  That notice must also describe the tenant's rights and responsibilities under Nevada eviction procedures.

If you are renting a house, pay attention to any documents that are posted on the house or that you receive in the mail, even if they do not appear to be intended for you or are simply addressed to "tenant."  Read all notices carefully to educate yourself about your rights!

FYI!  For more information about evictions after a home has been sold through foreclosure, click to read Tenant's Rights and Duties After Foreclosure, Evicting a Tenant After Foreclosure, Former Owner's Rights and Duties After Foreclosure, and Evicting a Former Owner After Foreclosure.