Las Vegas NowLandlord Wants to Sell to His Renters

Landlord Wants to Sell to His Renters

A Las Vegas professor says he is in the same position as many other homeowners, but several times over because he's also a real estate investor. The value of his investment properties has plummeted and he owes more than the houses are worth.

But instead of walking away from the homes, the professor wants his renters to keep them.

Vivian Hansen and her husband Justin have dreamed of buying a home since the couple married 13 years ago. But between layoffs, a daughter with special needs, and medical bills, that dream keeps drifting farther and farther away. "She's spent most of her life in and out of the hospital. It's ruined our credit. We pay a bill and magically another one shows up," she said.

Now the Hansen's landlord says he owes more than the home is worth, but rather than foreclosure, Professor Gary Solomon wants to modify the loans so his renters can buy the homes for what they're actually worth. "The truth is this package of properties was my retirement plan, but the bottom line is that they are not worth what they were. Rather than have them foreclosed on and have all the tenants on the streets looking for some places to live, I believe the tenants should end up with the property so they can have a start," he said.

Dr. Solomon says at market value the mortgages would be less than what the tenants pay in rent. "Someone is going to come forward and say, ‘What's the hidden agenda, Doctor,' and its nothing in terms of dollars and cents," he said.

But because he's an investor, the banks refuse to modify his loans. His attorney says the banks have agreed to allow short sales, but says the banks only care about qualified buyers with cash. Meaning the homes could end up in the hands of other investors and not the tenants. "All these lenders that have gotten bailouts from the government, they are not helping the people. There has not been a bailout for the general public," said Carrie Hurtik with Hurtik & Manke.

Dr. Solomon says most of his renters are long-term tenants and they always pay their rent, but he says now it's just a matter of finding a lender who will make a deal with his tenants rather than selling to an investor with cash.