Las Vegas Area Renters - Be Careful - How to Find Out if the Home You Are Renting (or want to rent) is in Default

By
Services for Real Estate Pros with Savvy Home Pix B.1000860.LLC

I decided it was time to update and rewarn all Las Vegas Renters and POTENTIAL Renters of the signs that your home you are renting (or want to rent) is in stages of foreclosure.

I perform many BPOs.  BPOs are Broker Price Opinions which means banks are just searching for opinions on list pricing for a home.  The home may already be foreclosed upon OR it may be in various stages of default or foreclosure.  This allows me see trends before they start happening.  While I have seen this in the past before, I have seen it way too much in the last week:  homes listed for rent that are in default!  This means, that if a solution doesn't come about for the owner of the home, the renter may pay all deposits, move in and find themselves speechless and homeless when the home goes into foreclosure.

Here are ways to protect yourself:

Find out when the home was purchased or if it was refi'd (for cash out) during the boom years (2003-2007.)  This could help you gauge if the home is upside down and could go into default.  This isn't a sure-fire way to protect yourself from heartache soon after you move in as I have seen some neighborhoods and areas have sub-80's pricing.  You can see this information on the recorder's website which I am about to give you.

Get the deposits & rents escrowed.  Instruct escrow to pay the mortgage payments AND HOA dues rather than relying on the owners to do that.  Also instruct escrow that in the event of foreclosure, the deposits and rents are to be released to you, the renter.  This will help protect you from the nightmare of having to fight a broke landlord, (who may file for bankruptcy protection,) for your deposits.

This is a tutorial for renters who are curious about the foreclosure status of the property you are renting (or are about to rent).

With the wave of foreclosures in the Las Vegas Area, many renters are concerned if the property they are renting is in good standing or about ready to get foreclosed on.  Even if you have been paying your rent or even have a lease option on the property, it is not a bad idea to make it a habit to check on a monthly basis.

It is also a good idea to check prior to renting a home!

Step 1:  Go to the Clark County Assessor's office and click on search, under real property records click "address".  The reason why you may not want to search by name is that many investors hold title in an LLC.

Step 2:  Fill in street number and street name.  Make sure you check the box next to "show current parcel number record"

Step 3:  Many addresses show up so write down the parcel number next to the address:

Step 4:  Go to the Clark County Recorder Home page for "Land & RPTT Information".  Scroll to the Arrow and choose "Search Records" 

 Step 5:  Read Terms and Accept (if you accept terms:)

Step 6:  Click on Parcel # (for Search):

Step 7:  Look for the following: 

Lien:  Look for liens.  Could be from homeowner's association or from master plan.  These entities may foreclose on the house!

Breach or Notice of Default:  Owner is in Default of their loan.  Foreclosure may or may not be in the works.  General rule of thumb, if house is going to be foreclosed on, it will happen in the next 3-6 months from recorded date

Notice of Sale or Notice of Trustee Sale:  Foreclosure is imminent.  Usually 30-60 days from recorded date

Trustee Deed:  House is foreclosed on

If your rental home is in default, please consult a real estate attorney prior to breaking a lease or stopping your rental payments!

 

 

 

Posted by

Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Wallace S. Gibson, CPM 12/18/2009 03:19 AM
  2. Melissa Zavala 12/18/2009 04:37 AM
  3. Tim Ludemann 12/21/2009 01:43 AM
Topic:
Real Estate Market Trends
Location:
Nevada Clark County Las Vegas Carmel Hills
Groups:
Foreclosure Education Forum
Local Expert
Las Vegas Foreclosures - Homes, High-Rises-Condos
BPO agents
Be The Best In Your Field
Tags:
las vegas foreclosures
las vegas nv real estate
las vegas rentals

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Ambassador
920,196
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Great information. I wish we could just go check like that, but we do put a clause in to review to make sure the seller now landlord is current on mortgage payements.

 

Dec 18, 2009 12:27 AM #11
Rainmaker
1,132,361
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Renee - This is important information for any renter. I wish we had the ease here to check online real time.

You should copy this to the local press. Great feature

Dec 18, 2009 12:35 AM #12
Rainmaker
412,839
Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

Great advice, i have put a clause into my rental agreements that the owner has to keep the home out of default, also i show the tennant where to check and what to and where to go.

 

Dec 18, 2009 12:59 AM #13
Rainmaker
1,333,948
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Renee - Excellent post!  This is something prospective tenants or their agent need to do in our area too.  I personally check all these records for my clients.

Dec 18, 2009 01:08 AM #14
Rainmaker
1,047,834
Fred Carver Personal Real Estate Corporation
RE/MAX Camosun Victoria BC Real Estate - Victoria, BC
Accredited Real Estate Consultant

Hi Renee...Congratulations on your feature...This is good advice for renters in your area to read.

Here if a home goes into foreclosure then tenant has to move, if the Buyer wants to move in, leases are not enforceable with our foreclosures.

Dec 18, 2009 01:13 AM #15
Rainmaker
109,585
Debbie White
Southeast Alaska Real Estate - Juneau, AK

I found your post to be very comprehensive, and looked up a property I was somewhat familiar with.  It was a real eye-opener.  I hope lots of prospective tenants find this post!

Dec 18, 2009 01:55 AM #17
Rainmaker
255,615
Kristi DeFazio
RE/MAX Advantage - Colorado Springs, CO
Colorado Springs Rea lEstate 719-459-5468

Did you know that if your rental agreement went into effect before the NED was filed, the renter had at least 3 mos. after a foreclosure to move out? It is called tenant protection act (or something to that effect) and went into effect in May.

Dec 18, 2009 02:04 AM #18
Rainer
162,981
Trisha P Realty Group
Realty Executives - Leavenworth, KS
"Holding the Keys to Your Dream Home"

Great info for everyone.  Ill have to try that out here.  Thanks

Dec 18, 2009 02:52 AM #19
Rainmaker
1,237,646
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Anyone who hears or learns of these types of situations needs to refer the tenants to this FEDERAL legislation.  They need to respond to ANY and EVERY communication they may receive with a copy of their lease and assert their rights under this new legislation!!

 

The FDIC has published highlights of the “Protecting Tenants at Foreclosure Act of 2009,” which became effective on May 20, 2009. The law is intended to protect tenants from immediate eviction by persons or entities that become owners of residential property through foreclosure and extends additional protections for tenants with U.S. Department of Housing and Urban Development Section 8 vouchers. It establishes a minimum time period that a tenant can remain in a foreclosed property before being evicted. Tenants must be given at least 90 days notice; tenants with leases must be permitted to remain until the end of the lease, except that a lease can be terminated with 90 days notice by a purchaser who intends to occupy the property.

Dec 18, 2009 03:14 AM #20
Rainmaker
116,374
Tony Sena
Shelter Realty, Inc - Henderson, NV
Broker/Property Manager

The new law AB140 that took affect on October 1st, 2009 represents changes in the area of foreclosure and tenants rights. Property Managers are required to disclose, in writing, to a prospective tenant if the property is subject to foreclosure proceedings. Failure to disclose this information can lead to civil and/or criminal penalities for the property manager.

Renee, we still need to connect :)

Dec 18, 2009 04:05 AM #21
Ambassador
1,229,706
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Renee: This is excellent advice. Tenants need to be careful!

Dec 18, 2009 04:33 AM #22
Rainmaker
1,560,731
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

What a good real estate agent you are!!  Taking care of ALL, or at least trying to!  Having a rental that's about to be foreclosed, or is in default can and does play a sad trick on the unsuspecting renter.  GREAT advice on having the rental, deposits escrowed!

Dec 18, 2009 04:53 AM #23
Rainmaker
325,871
Esko Kiuru
Bethesda, MD

Renee,

Getting an escrow and having it make those monthly payments is what this market requires for the tenant's protection. You never know. The new law in effect now in Nevada should be helpful, too.

Dec 18, 2009 07:28 AM #24
Rainmaker
511,934
AJ Heidmann ~ CRS
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Renee, as always your information and knowledge of the happenings in the Las Vegas market are the best out there.  Keep it up!

Dec 18, 2009 08:36 AM #25
Rainmaker
1,924,738
Tom Braatz Waukesha County Real Estate 262-377-1459
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!

Renee,

How frightening; what a domino effect this could create in some scenarios.

Dec 18, 2009 09:24 AM #26
Rainmaker
231,989
Emily Lowe
The Lipman Group | Sotheby's International Realty - Nashville, TN
Nashville TN Realtor

This is really great information - and also scary that renters have to look into all of this!

Dec 18, 2009 11:24 AM #27
Rainmaker
232,985
Susan Thompson-Solomons
Berkshire Hathaway Home Services McNelis Group Properties - Solomons, MD
Southern MD Real Estate-Solomons Specialist

This is excellent information. With so much focus on the risks to the landlord, many do not realize the risks to renters. Rentals have become so complicated - like everything else, there is nothing left untouched in the whole financial meltdown.

Dec 19, 2009 04:40 AM #28
Rainmaker
661,487
Christopher Watters
Watters International Realty - Austin, TX
Austin Realtor (512-829-8000)

I have read alot of stories about people this has happened to. As susan mentioned, there is so much focus on the landlord sometimes people forget to do their due diligence for the tenant!

Dec 19, 2009 06:55 PM #29
Rainmaker
317,289
Liz Flint
Century 21 Hardee-Team Realty - Houston, TX
Houston\Tomball Realtor (832)816-8066

Great post Renee, I think anybody could follow this and get the information.

Dec 21, 2009 01:53 AM #30
Rainmaker
760,838
Thom Abbott
MyMidtownMojo.com |770.713.1505 | Intown Atlanta GA Condo Living - Atlanta, GA
Midtown Atlanta GA Condos For Sale

Renee...what a great post and I can see some ideas I can pass along to my clients/readers here in the Atlanta area.

It appears our system of checking the Assessors records is much easier...no requirements..you just type in an address and there you are.

 

I can see me doing these screen captures now....I'll be back in a month!

Dec 10, 2010 10:23 AM #31
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