New Law to Protect Las Vegas Rental Tenants When Home is in Foreclosure
Renting a Las Vegas Home can be very scary in today’s real estate market. With so many homes going into foreclosure, it’s hard to know if the home you are renting could be next. Many times, renters find out the home they are renting foreclosed after the fact which doesn’t give them much time to find a new home to rent, pack and move. Well now there is good news for renters in Las Vegas. The US Government just passed the “Helping Families Save Their Homes Act of 2009“.
The “Helping Families Save Their Homes Act of 2009″ became law on May 20, 2009. It included provisions to protect tenants from eviction as a consequence of a foreclosure affecting the property being rented. The new law requires tenants be given 90-days notice prior to having to vacate, and allows them to stay through the remainder of their lease, if the home will continue to be a rental property. The protections of this law apply only to “bona fide” tenants – who have a written contract, the lease was the result of an arms-length transaction, and the rent is not substantially less than the fair market rent for the property. Under any conditions, tenants may still be evicted if they violate the lease terms. These provisions expire on December 31, 2012.
With the passing of the “Helping Families Ave Their Homes Act of 2009″ renters can feel a little more at ease if they get the bad news that the home they are renting has foreclosed. They will have ample time to get their affairs in order and locate a new Las Vegas home to rent.
If you are looking for a home to rent in Las Vegas, feel free to give us a call at 702.376.7379 and we can assist you in finding a home for rent.
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Comments
I think it is important to note that if the property is already in default when the renter leases the property the federal law offers NO protections for the tenant. Renters, and their agents, should be diligent in finding out the default status of a property prior to renting as well as during their tenancy. This can be done at the recorder’s office or for free on our website, http://www.rentalforeclosure.com. We also have a new service that property managers can use to check all of their properties for defaults and other foreclosure related documents instantly, online, at rentalforeclosure.com/propertymanager
Have you checked out NoPayTenants.com? Banks that inherit tenants that refuse to leave the property are ending-up with records on that website.
Public Law 111-22, Effective Date May 20, 2009
TITLE VII–PROTECTING TENANTS AT FORECLOSURE ACT
SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General- In the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to–
(1) the provision, by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and
(2) the rights of any bona fide tenant, as of the date of such notice of foreclosure–
(A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or
(B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90 day notice under subsection (1),
except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants.
(b) Bona Fide Lease or Tenancy- For purposes of this section, a lease or tenancy shall be considered bona fide only if–
(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; and
(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a Federal, State, or local subsidy.
(c) Definition- For purposes of this section, the term `federally-related mortgage loan’ has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).
It applies to lease contracts entered into before notice of forclosure is given.
All tenants please seek legal advice and fight! If you have acted in good faith then seek legal help and don’t stop looking until you have found an attorney NOT on retainer with the Banks. Fight for justice.
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