Legal Question in Real Estate Law in Nevada

Re: Renting a house in foreclosure

Move out and sue the landlord for your deposit and moving expenses,

Re: Renting a house in foreclosure

If you simply move out and stop paying the rent, YOU will be in default of the lease agreement, and subject to eviction by either the landlord or the new owner (likely the bank). You certainly do not want to be painted as the bad guy here . . . it is important that the owner (who, apparently, has failed to pay his mortgage) is the wrongdoing party. So long as you remain in compliance with the lease (that is, pay your rent and abide by the terms of your rental contract), you have the stronger argument for continuing to occupy the property unless and until a sale is complete. If you remain in compliance, you will be able to continue in possession until such a sale is consummated.

Of course, all this changes if you say that the lease is expired, there was no written agreement, or you received valid notice of termination of tenancy from the property manager.

Whatever the circumstances, suing the owner is your LEAST likely way to get a positive result. If he is not even paying his mortgage, what are the chances you will be able to collect any damages from him? You could spend a bundle on legal fees and court costs and end up with a worthless piece of paper (judgment) in your hand.

Your rights under the lease are typically extinguished by the foreclosuere and sale of the house, but the new owner may be buying the house as an investment (not to occupy, himself), and like the idea of a tenant already being in the property! Stick to the promises you made in the lease, and the new owner may want to keep you as tenant in the house after the sale is complete.