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

  • Are purchase money mortgages limited to no recourse notes?
  • Can a lender sue for a deficiancy balance(first mortgage only)on a townhouse or condominium? Does AZ33-814 prohibit the recovery of any balance due after trust property is sold pursuant to the trustee's power of sale, or the trust deed is foreclosed in the manner provided by law for the foreclosure of mortgages on real property.
  • Currently my home is not in foreclosure. I am behind in payments and the bank will not allow me to make partials. They are willing to reinstate the loan but I am unable to raise the 6 payments required. I have received default and letters of intent to accelerate. The bank is recommending a short sale. I want to work this out and I have saved 3 payments and I wish to stay in the home. We received a modification in 2012 and a special forbearance in 2013 I am back to work after being laid off in September and emergency surgery in December. Do I claim bankruptcy in order to save my home?
  • my home was auctioned in a forclosue on 02/28/14....I am now being evicted by monday.....where is the 70000 equity in my home ?
  • We had a house go to foreclosure and the lender ended up selling it. Now the bank of the second mortgage is trying to sue us for the deficiancy. the lot is less than 2.5 acres & house is single family. Can they do this or does this violate ARS title 33?
  • I owned a house in 2005- when everything boomed it was way overpriced and there was a 1st and a 2nd. I went through a divorce and lost the home as it was upside down. It went into foresclosure and I never heard another word. This now 2019 and I received a letter in the mail saying the 2nd mortgage wants to settle with me for $5000 on a $92,000 note from that house- that was 13 years ago! Can they even do that? My house was upside down and then foreclosed on and sold.
  • The home we are renting is set to go to Trustee Auction at the end of this month. The "Protecting Tenants at Foreclosure Act" expired 12/31/2014. What are my rights as a tenant now that this has expired. Can I be evicted without notice..do I still have to receive ample notice if the new owner wishes to occupy the home?
  • Are the terms of a loan modification completely at the discretion of the lender or are there state or federal guidelines they must follow? Homeowners must become 90 days behind to get my mortgage company to consider modification. By this time, isn't my credit nearly as damaged as it would be with foreclosure?
  • I have recently reviewed our finances and determined that we can no longer afford our home. We are not late and have not missed any payments. I have come in contact with a law office based in CA that offers loan modification, short sale, and deed in lieu services. If we opt to pay someone to negotiate for a loan modification with our lender am I less likely to fall victim to scam with a law office?
  • The house I am renting is about to go into foreclosure. My landlord wants to remove the storage shed, window wrought iron around the home as well as the sun lights. Is this legal? What are my rights?

STORIES

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FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS

Documents

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans ReadSpeaker

.pdf  AzMortgageResource.gov ReadSpeaker

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Avoiding Foreclosure of Your Home

Predatory Lending Schemes and Scams

Information for Homeowners Facing Loss of a Home

County Tax Assessors

Where to Find an Attorney for Specific Legal Advice

Loan Modification Frequently Asked Questions

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

Horne Issues National Mortgage Settlement Consumer Alert to Arizonans

WHAT IF I RENT A HOUSE THAT'S IN FORECLOSURE - The Protecting Tenants at Foreclosure Act

FORECLOSURE DEFICIENCIES IN ARIZONA: Will I still owe money after a foreclosure?

Where can I find legal help with a foreclosure?

Will bankruptcy save my home from foreclosure?

Did you know the Arizona Attorney General’s Office has a wide range of statewide assistance programs funded through the national mortgage settlement that could benefit you or people you know?

Mortgage Reaffirmation Requirements Bogus

Recovering Excess Proceeds After Foreclosure of Your Home

The Mortgage Forgiveness Debt Relief Act

Veterans Facing Foreclosure

LINKS

Arizona Housing Information

HUD in Arizona

Federal Consumer Action Handbook Online

Arizona 2-1-1

Pima County Courts Self Service Center

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