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
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I just found out the house I'm renting is in foreclosure. My daughter is attending school in the area too. Do I have any rights or am I just stick waiting to see what happens? Do I pay rent? Thank You!
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I have a 3plex in AZ that is about to go into foreclosure. I was told by an Attorney that if the lender does not come after us with in 90 days of the foreclosure date by law they cannot come after us in other words sue us. Is this true?
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I filed Chapter13 approx 2years ago. We chose to surrender our home and the Trustee sent a letter to the mortgage company, lifting the stay so they could proceed with foreclosure. The mortgage company sold the mortgage to another company, that company sold it to another. The new mortgage company says we are still the owners. Where do we stand legally and how long can this go on?
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We had a home that was foreclosed on in 2008. We had a first mortgage and a second HELC, both by the same bank. They foreclosed via trustee sale, not judicial foreclosure. Can they come after us for the total amount of the HELC?
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In 2010 I was granted a bankruptcy, which included my home. However, the home wasn't foreclosed upon until 2011. Now, I want to purchase property. Does the date before I can get a loan count back to when the bankruptcy was granted or to the date of the foreclosure?
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I just received a notice saying I have to vacate my house that it was auctioned but I'm paying my house and I'm never late and company who say they purchased have other name as home owner not mine and my husband what is going on what can I do my house wasn't foreclosed bank says everything okay in there side how do protect myself how is possible for it to be auctioned
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I'm a female, single,on disability,recovering from liver transplant and chemo treatments for a rare lymphoma. My HOA initated fore closure for non payment of Assn fees. Im trying to resolve this with hardship modification loan.My mortgage co is working with me. I'm on a fixed income and can't hire an attorney. Can the foreclosure process be stalled until I get this done? thanks
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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?
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our home has foreclosed and we are threatened with lock out. how do we find out what court will handle the notifications?
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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.
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