Profile picture for GK1977

Just found out landlord has not been paying mortgage

We moved in August 15, 2009.  Just received papers from a lawyer saying house is in pre foreclosure because payments had not been made since Aug 1, 2009.  He knowingly rented this house to us that he was no longer making payments, and never disclosed it to us.  I contacted the property manager 2 weeks ago and he said we can break our lease with a 30 day notice and get our deposit back.  We called the prop manager yesterday to tell him we aren't comfortable with the situation, and we will probably be giving our notice.  He said, I don't think you can get your deposit back if you break your lease, but you can break your lease.  What???  You told us we would get deposit back.  He was going to call the owner and tell him the situation and call us back.  I don't care if the house is in the process of a loan modification.  He lied and therefore, he can lose his good tenants.  What can I do?  Any suggestions?  Thanks
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 06 2010 - West Las Vegas
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (4)

Profile picture for user46340355
As many have stated that you should speak to an attorney, I find that not necessary .Contact HUD online and you will find an actual government agency that looks out for the people they were designated to look out for. I had a similar situation and found the advice and actions of the person who handled my concerns both professional and caring. They rectified a bad situation not created by me and turned the cards in my favor. They are truly one of the few good government agencies. Good Luck.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 26 2013
Profile picture for GK1977
Thank you very much for all your info.  I'm not going to go through the stress and worry.  We will just stay until our lease is up.  Like you said, they did pass a law that we have 90 days to move out, or the cash for keys deal.  THANK YOU!!!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 28 2010
Stay in the house and continue to pay the rent you agreed to pay until  the bank or the owner notifies you to move out.  Read your lease to see what your options are if you should break your lease before the expiration date.  This is not legal advice. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 28 2010
Your best bet is to contact a real estate lawyer and discuss the situation with him.  Having said that, and with the caveat that what I say below is not legal advice, my thoughts are as follows:

1)  Whether or not you get your deposit back depends on the terms of the lease.  If it says that you don't get it back if you terminate the lease early, then you don't get it back.  The property manager may have misspoke when he/she said you could get your deposit back if you break the lease.  Of course, you can always break a lease, but the lease may state that there are consequences to you for doing so (such as forfeiting the deposit, or some other consequence, such as being responsible for the rent for the remaining term of the lease).  Therefore, if you break the lease, be sure you understand what your lease says about the consequences to you.

2)   All other things being equal, you should probably just stay in the house and continue paying rent.  Why?  Because you're getting a place to live in exchange for the rent.  And if the house is eventually foreclosed upon, you will usually have up to 90 days to vacate the property under new federal laws.  Also, the bank that forecloses will likely pay you to vacate the property if they want you out before your lease is up.  This is called "cash for keys" and generally speaking the occupant of the house (whether it's the owner or a tenant) will end up with anywhere from $1,500 to $5,000 from the bank in exchange for vacating within 24 hours and turning over the keys to the bank (or, in most cases, you turn the keys over to the Bank's real estate agent). 

3)  Sure, the owner/landlord deceived you.  And if it ends up costing you money you could sue him for fraud.  But so far it hasn't cost you money.  What the owner does with the checks you write him is irrelevant to you as long as you're in the house.  So, even though the house may be going through the foreclosure process, you are still living there and you must pay rent for that privilege (you can't just stay there for free -- that would expose YOU to liability by the landlord if he were to sue you).  In fact, you may end up being able to stay in the house through the end of your lease, depending on how long the foreclosure process takes, and you may also actually get paid to leave in a "cash for keys" arrangement.  So you may actually make money on this deal, rather than lose money.   But thus far, based on what you've said, you don't  have any monetary damages to sue for.  Besides, even if you did suffer monetary damages, they probably wouldn't be worth suing over, given the cost of hiring a lawyer. 

I hope this helps.  Feel free to post any more questions about your situation on this thread.  And seek legal advice from a NV licensed attorney to confirm your rights and obligations.  As I said above, this is not legal advice.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 28 2010
 
Related Questions
Just found out landlord has not been paying mortgage
Profile picture for user46340355
Latest answer by user46340355
May 26 2013 | 4 answers
how oten will the landlord repaint and recarpet my townhome.
Profile picture for Steve Matthews
Latest answer by Steve Matthews
February 07 2011 | 4 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 901 Indian Ln, Las Vegas, NV Home For Sale
    901 Indian Ln, Las Vegas, NV 89108

     For Sale: $210,000

    • Beds: 3
    • Sqft: 1448
    • Baths: 2.0
    • Lot: 7841
  2. 2633 Sierra Seco Ave UNIT 105, Las Vegas, NV Home For Sale
    2633 Sierra Seco Ave UNIT 105, Las Vegas, NV 89106

     For Sale: $67,000

    • Beds: 3
    • Sqft: 1213
    • Baths: --
    • Lot: 3378
  3. 2433 Shady Hill Ave, Las Vegas, NV Home For Sale
    2433 Shady Hill Ave, Las Vegas, NV 89106

     For Sale: $125,000

    • Beds: 3
    • Sqft: 1096
    • Baths: 2.0
    • Lot: 348480