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

Asked over 1 year ago - 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)

  1. Richard Edmund Hawkins

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    Contributor Level 16

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    Answered . 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.

  2. William C. Devine II

    Contributor Level 13

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    Lawyers agree

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    Answered . 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... more
  3. Scott Benjamin Riddle

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    Contributor Level 20

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    Answered . 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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