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It is legal to rent out surrendered property in BK until someone foreclose on it (Bank or HOA)?

Las Vegas, NV |

BK case was discharged and closed six mounts ago. The last payment was made two and a half years ago. No NOD yet.

Attorney Answers 3

Posted

Surrender in a bankruptcy means almost nothing outside of the bankruptcy.

Tenants have certain protection for leases entered prior to any notice of default, but deceiving them about status could also be fraud.

Nevada doesn't prohibit renting it out (and as a practical matter, the bank much prefers that the property be occupied.

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Posted

It is not "surrendered property" because you stated your intent to surrender in your case. It is still your property. Just keep in mind that while you have a discharge of the debt, you still need to maintain and insure.

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Posted

Yes it is legal but you should be cautious with tenants on long-term leases. As the prior answer stated, until the bank forecloses or accepts a deed-in-lieu, then although you may have stated that your intent was to surrender, it's still your house to do with as you please. Once the lender files an NOD then you have an obligation to tell any new potential tenants about it, but if it hasn't been filed then its your house.

Regards,
William Devine, II
Rainey Devine

I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.

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