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 IS THE LAW THAT STOPS EVICTION BY BOTH THE NEW OWNER OF THE FORECLOSED EQUITABLE TITLE AND THE SERVICING BANK?
  • We currently have a mortgage on our home as well as a home equity line of credit. If the first mortgage company forecloses on our property, can the bank that we have a home equity line of credit sue us or file a judgement on us for the amount of the home equity line of credit we used?
  • Can the lender force foreclosure on my home when my ex-spouse got a 2nd mortgage in his name showing him as the borrower while we were married on this home And now I own this property from the divorce?
  • while working on a modification, my home of 17 yrs was sold at auction. Pls help me understand what my rights are. Note taped to my DOOR saying who the "new" owner is and I have to be "out in 3 days" please give me a direction, my son is disabled and lives w/me (25) I truly have no where to go and am in such an emotional wreck I cannot stand it. How can this be legal? How can a home be "sold" while they are "working on modification"? Pls assist me in whatever way you can. thank you.
  • 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 have a first and second mortgage on my home. The value has plummetted by 35% since I bought it 2 years ago. How can I submit for a loan modification program if I have 2 loans? My only other option is foreclosure. What happens if I have to default on the 2nd, but try to stay current on the 1st? I need help!
  • I was served a special writ for foreclosure due to being behind on HOA dues. How long do I have to try to pay the amount owed? It states my redemption period is 6 months. Is this from data of sale? Or from date I was served? Also, how long do i have before it goes to auction?
  • I asked CitiMortgage Inc . for a loan modification at the end of 2012 because my ci-borrower was gone and I was going to get a 20% paycut two months from when I made my request. I was definitely in imminent danger of default. They said call back after I miss 3 payments and then they would help.Endless paperwork, 10 payments behind-I reinstated in full and am now current. They transferred deed to trustee and still foreclosure activity. Help
  • Are purchase money mortgages limited to no recourse notes?
  • The house we rent is in foreclosure. Are we obligated to stay in the house for the 90 days allowed or can we move as soon as we find a new place to live? Can the landlord hold us to the terms of the lease even though the house is in foreclosure now? Can he take us to court if we move out prior to the end of the lease?

STORIES

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FIND LEGAL HELP

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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

Pima County Courts Self Service Center

Arizona 2-1-1

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