Nevada continues to lead most of the nation when it comes to home foreclosures. In an increasing number of cases, we're finding it doesn't just affect the homeowner, it affects renters as well.
News 3 Investigator Mitch Truswell has one couple's story. And you might be surprised who their landlord turned out to be.
When the Hays found their rental home last June they were pleased. Not only could they move in right away, the landlord asked them what they could afford for a deposit. There was even the chance to buy the home at some point in the future.
But that would all change in less than seven months. There's no forgetting the day Jennifer and Travis learned something wasn't right with their rental home. Their landlord called January 15, a memorable day. It was the same day Jennifer was headed into surgery.
"She called to tell me I should start looking for another place, that she could sell me a house," Jennifer explains. "And that's when I figured out that not only am I going through a miscarriage, but I was also going to lose my house."
Jennifer says the landlord never used the word foreclosure in that phone call. They'd learn that on their own. Jennifer and Travis saw the News 3 Investigator story on how to learn if the rental home you're living in is in foreclosure.
They followed the steps, and got the answer they feared. "After we saw that, then everything in the past made sense. She wanted us to move in so fast," Travis said.
Travis' friend, a real estate agent, confirmed the news. "He said 'I'm sorry to tell you the bad news, but your house is going to be sold in six days. January 28th your house is going up for auction.' And our landlord had not said one word to us," Travis explains.
The couple was faced with finding a new place to live, affording a new place, and doing it quickly. Their only question: Why would their landlord never mention the foreclosure?
We had many questions for the landlord about the rental home. We learned she has a lot of experience buying and selling homes and should be very familiar with the process of foreclosure. That's because she's a real estate agent.
Landlord/real estate agent Bobbie Dust referred us to her attorney, who admits this is a tough time for realtors. Attorney Shawn Christopher claims Jennifer and Travis should have known something was up. "Notices about the foreclosure went to the property address. The tenants brought them to my client. Brought them to Ms. Dust. When you get certified mail from a mortgage company, you know something is wrong."
Jennifer and Travis agree they saw those envelopes and delivered them along with the rent check. "When I dropped off the letters I'd ask is everything okay with the house? She said actually we're in litigation with the house, I'm suing them and think I'll be getting a lot of money from them," Jennifer said.
There were signs of trouble back in August. Liens put on Bobbie Dust's rental home by the homeowner's association for non payment of dues. After not receiving house payments, the mortgage company filed a default on the home in October, but the Hays didn't learn about that until January.
Apparently the 1,400 a month Jennifer and Travis paid in rent never made it to the mortgage company. The home was sold to a bank on January 28. The Clark County Recorder's Office recorded the sale on February 5.
But three days later, no longer owner of the home, Bobbie Dust asked the couple to pay February rent. The request came in a text message.
"It was on February 8th, in the morning," Travis explains. "Are you paying rent today?"
Travis wrote back:
Are you kidding me? We know you don't own this house anymore. We spoke to the bank. We're not stupid, we're not giving you one more nickel and as a matter of fact, you owe us $765 for the deposit and for fixing the refrigerator.
Bobbie wrote back:
Are you still living in my house? If so, no one lives for free.
Travis replied:
It's not your house. As of January 28th at 1 pm, the bank owns this house, not you.
Bobbie's final text:
Contrary to what you might think, it's mine until February 29th, don't get so cocky.
Bobbie Dust's attorney says his client, again a real estate agent, was not aware the sale of the rental home had taken place.
The Hays did find a new place to live, but are still waiting for their $500 deposit.
We contacted the Greater Las Vegas Association of Realtors. It confirmed Bobbie Dust is a member. The association says in its code of ethics realtors are bound by all the rules, even in their own real estate transactions. That includes Article 1, which states that all parties should be treated with honesty.
