Your Rental Is In Foreclosures?
Must I Move After The Landlord Is Foreclosure On? NO! In a regular sale of a rental property, the new non-occupant owner (Bank or Investor) takes the rental property “subject to” the existing lease, which means that both the new owner and the tenant are bound by the terms of the existing lease. Neither the new owner, nor the tenant may unilaterally cancel or terminate the lease. Under “The Helping Families Save Their Homes Act of 2009,” signed into law by President Obama on May 21, 2009, the act provides that the new owner of the rental property takes the rental property “subject to” the existing lease, which means both the new owner/landlord and the tenant are bound by the existing lease. The full text of the Act can be found at the following link: TITLE VII—PROTECTING TENANTS AT FORECLOSURE ACT. The Arizona Residential Landlord and Tenant Act still applies, allowing a tenant to give notice regarding various property defects and, if the defects are not remedied, the tenant may terminate and vacate the rental property.
IF THE HOME SOLD TO SOMEONE WHO BOUGHT IT AS THEIR PRIMARY RESIDENTS – YOU WILL HAVE 30 DAYS AFTER RECEIVING AN OFFICIAL LEGALLY DELIVERED 30 DAY NOTICE.
What If I’m Renting And It’s Going Into Foreclosure? 25 years in the business, knowing what I know, the first thing I would be doing, calling the landlord and start demanding strongly on getting my deposits back (form K) and Section 33-1321, (D & E), whether I plan on staying or moving (form J). Remember, the landlord breached your rental agreement and you could be entitle to damages. Whoever forecloses on the house may honor your lease, however they do not have your deposits.
The landlord may tell you their doing a loan modification. So what, who cares, 99% of loan modifications fail. Alternatively, they tell you they are going to let the property be foreclosed. At this point, you need to decide whether you want to stay or move. If you want to move, ask the landlord if you can vacate early. If the landlord will not agree to let you vacate early, continue paying your rent. If you stop paying rent, (B & C), before the trust deed sale, and I see this all the time, you will lose all your tenant rights, never win in court, be evicted by a Judge, lose all chance of getting your deposits back, and the owner will get a judgment against you and ruin your rental history.
If you have a property owner that’s a ___________ ; you can bring them into compliance by emailing this link to them: NOTICE!!! If you own Residential Rental Property in Maricopa Arizona! Check To See If Registered?
Or you can take it a step farther and go to this link: Report a property as an unregistered rental or landlord code violations!