Arizona law requires landlords give tenants notice of pending foreclosure.
Must provide notice within five days of receiving notice of foreclosure.
Arizona law requires that landlords tell tenants about any foreclosure. This is good news for tenants: as of September 13, 2013 the Arizona Residential Landlord and Tenant Act, Arizona Revised Statutes 33-1331, was amended to require owners to provide tenants with a written notice within 5 business days of receiving a notice of trustee’s sale. The old law only required notice if that provision was in the lease.
If the owner receives a foreclosure notice after renting the property, the owner shall, within 5 days, provide the tenant notice of the foreclosure.
Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.
33-1331 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
Republican Rep. Steve Smith of Maricopa says he sponsored the bill after renters complained they were tossed out by banks or new owners without notice. He is bound to these events due to his profession and it produces a fascinating read. Many found their valuable items “gone” without explanation. The landlords failure to notify the tenants caused a great deal of difficulty because the tenants normally had 5 days to move out of the home once the foreclosure was completed. For those tenants evicted, here is some great advice on how to submit a rental application.
We have several videos on our web site. Below are a few that might be of interest:
- “Lender’s Foreclosure Rights in Arizona”
- “Should I keep my home or let it go into foreclosure?”
- “Meet Ms. Drain and Suggestions on How to Hire an Attorney”
Diane L. Drain