I was more curious about your landlord's talk of returning your security deposit after the sale. Sorry, Mr. Landlord. The statutes about the Holding and return of security deposits are very clear. From ARS: 33-1321. Security deposits B. 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 33-1321. From ARS 33-1321: E. If the landlord fails to comply with subsection D of this section the tenant may recover the property and money due the tenant together with damages in an amount equal to twice the amount wrongfully withheld. TWICE THE AMOUNT. To read the entire statute just type in ARS 33-1321 and ARS 33-1331. The WEB REFERENCE below is worth your reading. Good luck! Philip
The only way that the owner will get paid any proceeds would be if the amount that the home sold for at the trustee sale was more than all of the liens against the home. The liens will be paid first and then the trustor (previous homeowner) will receive the balance. In AZ, this is rare that there are any funds remaining because most trustee sales the homes are upside down.
With that in mind, did you sign a legal contract to pay rent until a certain date?
Does your contract state if the home is in foreclosure that you can stop paying rent?
These questions might answer your question.
Here are some useful links:
I hope this helps.
At this point you should at least talk to an attorney for teh 1st free meeting to get some direction. no one can tell you not to pay your rent, i have heard not paying it but p[utting it aside in case the owner is able to get out of foreclosure by working something out with the bank, the you still have your rent to pay him.
You can also google landlord tenant law Arizona and get the rules regarding security deposits.
Good luck working things out