Foreclosure Article


Renting a Foreclosure

1.       Can I rent a property that is in foreclosure?

Yes, but the landlord must provide a written notice of the foreclosure with the rental agreement.

2.       What happens if while I am renting a house the property goes into foreclosure?

If you are renting house and the property goes into foreclosure the landlord must notify you. In fact they must provide you with written notice within 5 business days of the first notice of trustee sale.

3.       Is there a specific form that I need to use to notify a tenant?

Arizona Revised Statute 33-1331 provides a format for how a landlord should set up this information but it is not necessary to use this exact format.  The format is as follows:

This property is undergoing foreclosure. For more information on this action, you should contact ________________ (name, address and phone number of the court where the action is filed or trustee, attorney or other responsible party).

A sale at auction may or may not occur as a result of this foreclosure. Currently, the sale of this property has been set for _________ (time, date and place) or no date for sale of this property has been established.

4.       What happens if the owner fails to provide notice?

If a landlord fails to notify their tenant in writing within 5 business days the tenant may terminate the lease and recover their security deposit. It is also possible to obtain injunctive relief and money for any damages the tenant may have.

5.       As a tenant can I just leave the property if I am not notified properly?

No, a tenant must deliver written notice stating how the landlord breached the agreement and that the rental agreement will end on a specific date. The end date must be at least 10 days after the letter is delivered.

6.       Does this apply to apartment complexes?

No, these laws do not apply to apartment complexes or other multifamily residential complexes that have more than four units.

 

Updated: February 24, 2017


Comments:

QUESTIONS

  • what assistance is available to me I was 12 months behind caught up on six in September and they started foreclosure this month sell date is Feb of 2015 I thought they were working with me and no notice foreclosure.? my husband was on unemployment for over 4 years and recently is now working and we are able to catch up and stay on track.
  • I am filing a foreclosure on an agreement for sale because of non payment for 5 months. Do I need to send a letter of intent to foreclosure and wait 60 days before filing with the court?
  • I was informed of trustee sale to take place 06/2008 on my home in Florence, AZ. My Husband and I decided it was best to vacate the home with our family before the sale. We filed Chapter 7 Bankruptcy in 2011 and included the home and HOA. We received a letter from an attorney, suing us for HOA dues, post bankruptcy. Wouldn't it already be considered foreclosed from the notified date of sale, even if it was postponed?
  • In the dot com recession, my IT job disappeared. I had to refinance my home. My son signed the new mortgage because I needed his income to qualify. I have since wished he could be removed but couldn't refi because property values fell. Now my job has once again disappeared and I am facing foreclosure. I am applying for assistance thru SaveYourHome. My mortgage counselor tells me that I would easily qualify except for the co-signer. In the past 2 yrs, my son has gone thru a BK & lay-off. He's been at his new job 9 months makes $13 per hour. I've heard about Quit Claim deeds. Can he be removed?
  • My now husband bought a home in 2007 at the peak of the market (before we were married). We can no longer afford the house payment and are now married but only his name still exists on the title. If he forecloses on the home, will both our credit be affected although we got married after he bought the home and the title is still only in his name?
  • Last year we fell behind on our home payments. We tried to work with the lender for months, Instead they set a foreclosure date. We only owe $265,000 plus the arrears on our home which is now appraising at $422k. We were forced to file Ch. 13 in order to stop the foreclosure and save our equity. My spouse now has a high income job offer out of state. We want to rent out our home instead of selling & dismiss the BK but still owe over $18k in arrears. With our bad credit due to the BK, what are our options for getting a loan to pay the arrears? Our home will rent for $2800 and our payment is 2k.
  • my dad took out home loan in 2004 died 2007 never told mortage co i just kept paying the payment but fell behind on 2 payments mortage co wants 3000 or foreclose can they do that
  • My home was sold at a foreclosure auction on 11/22/16. I have never been served a 3 day notice by the new owners just a Summons and Complaint. They want me out of the property and want to charge me an outstanding amount of money and I cannot afford to pay it. They are trying to get a default and judgment against me and I am living in the house with my 8 year old granddaughter. I work 4 days a week and need time to secure another place for us to live. These people are very unreasonable and want me out. I have lived there for 23 years and am having alot of anxiety over this. HELP
  • How can I get back my property I sold to someone (deed of trust) who promised to pay me monthly for 30 years arrangement, but become delinquent in payments? How to foreclose it from home owner? Does home owner covered by AZ anti-deficiency law?
  • is "strict" foreclosure or "deed in lieu" foreclosure available in arizona?

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