Foreclosure

questions & answers

Question: What rights do tenants have that are renting a house that has forclosed now that the Protection Act expired on December 31, 2014?

Answer: From ARS Title 13
§ 33-1331. Notice of foreclosure; effect on lease; damages A. If a rental agreement is entered into after the foreclosure action was initiated, the owner shall include written notice of possible foreclosure with the rental agreement with the tenant. The notice shall include a statement that is substantially in the following form: 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.

 B. If the owner receives a notice of trustee's sale or other notice of foreclosure on the property after a tenant has entered into a rental agreement on the property, the owner shall provide the tenant with written notice as prescribed in subsection A of this section within five business days after receipt of the notice of trustee's sale. This subsection applies only to the first notice of trustee's sale or the first notice of foreclosure received by the owner after the tenant has entered into the rental agreement.

 C. If the owner fails to provide notice as prescribed in this section the tenant may deliver a written notice pursuant to section 33-1361 and recover damages and obtain injunctive relief. The security deposit shall be returned to the tenant as prescribed in section 33- 1321.

 D. This section shall not apply to multifamily residential rental units consisting of four or more connected units.

QUESTIONS

  • What rights do tenants have that are renting a house that has forclosed now that the Protection Act expired on December 31, 2014?

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