Renting house in foreclosure in Maricopa County AZ.

Question

I am renting a house through a property management company in Maricopa County, Arizona and had signed a lease through January 31st of 2009. However, I just found that as of July 22nd that the house is in foreclosure (please note that this property is only managed, not owned by the property management company). According to public records, it is going up for auction on October 21st. With that being said, what are my legal rights and options as a renter (NOT looking to buy the house)? How do I know when I have to move out? When should I stop paying rent? My two main concerns are an $1100 security deposit (paid to the property management company) and having ample time to find another place to live and get my belongings moved.

***Please only answer if you have experienced this situation first hand or are a lawyer/real estate agent/broker/property manager preferably in AZ (as I have done research on my end already and know the rights change from state to state).

Thanks for your help!

Answer 1

Having previously worked in foreclosure dept I am surprised that there is a sale 3 months out.You said you have done your research so I assume you have found a notice of Trustee Sale with the Recorders office. With that said, have you paid August rent? Personally I would not. Write a check to yourself with Aug or Sept rent in the memo line and deposit it in your savings account. That way you have a record of it being cashed. If they call asking about the rent turn the conversation around asking about suing for moving cost getting your deposit back and the like. All you have to tell them the next place you live is the truth. You were renting a house and the place was foreclosed and you where evicted. Don't worry about them suing you or evicting you, your going to get evicted after the sale anyway.  Odds are more than likely the bank will buy it back. If that happens call them and see if you can stay until the sell it. Heck, why not save up your money and buy it from the bank using your rent as a deposit. But like I said personally I would not pay the present owner another dime. you have been paying him since you moved in and he isn't paying the bank. One thing you can do is call the community center down there and find out if they have a free legal advice night. They have them up here in Scottsdale the 1st Tuesday of the month free for residents. I would definitely talk it over with a lawyer to get more in site. Don't look at it as not paying and getting a free ride. That's what your landlord did. NOT YOU

I read the 1st post and saw Pinal county. I thought you lived in Maricopa city not Maricopa county.  But I agree the landlord voided your lease. I don't think you owe him a dime

Answer 2

I'm in Mesa.  Your lease is wiped out by the foreclosure auction on October 21.  The sheriff will escort you out of the house.  It belongs to the bank.  The property manager has your deposit. Failure to return it would result in the manager and owner being assessed 3 times the amount of the deposit.  You would get triple damages.  I'm sure they will return it if they have it.

One note.  The current owner (not the manager) has a mortgage. The mortgage payments say "And Assignment of Rents".  If he collects rent (even thru a manager) he MUST send that rent to the mortgage company. By pocketing the rent and not sending it to the mortgage company , you know he is not being honest.  He is scamming.  You could contact the mortgage company (contact # on the foreclosure notice you mention which is recorded in Pinal County and available for you to see at the Recorder's Office) and ask if they want you to pay them directly.  The reason this might be smart is that the mortgage company may pay you $500 or $1,500 if you agree to "protect" the house.  Their worst nightmare is to have an empty house vandalized just before the foreclosure.  Happens all the time.

Part 2 is that 1 out of 25 foreclosures are delayed.  If you are in touch with the bank, they will tell if there is a delay.  You could stay longer if you wish.  /