Foreclosure in 85381>Question Details

Gilbert Duran, Renter in Peoria, AZ

I AM A TENANT OF A OWNER LANDLORD THAT IN FORCLOSURE WHICH WILL BE AUCTIONED IN SEPT. 2010 DO I HAVE TO KEEP MAKEING PAYMENT WHEN THE CREDIT UNOIN AP

Asked by Gilbert Duran, Peoria, AZ Sat Aug 7, 2010

THE LANDLORD THAT I AM RENTING AH HOUSE . THE HOUSE WENT INTO FORECLOSURE TO BE
SOL DIN SEPTEMBER 2010. DO I HAVE TO KEEP MAKEING PAYMENTS TO HIM? he sad that we are going to get our deposits back when he gets the money from the auction. iI told him that they were not going to give him the money it is going to the credit union

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Gilbert, Dan is correct we can not give legal or financial advice but I'll go out on a short limb. If you have a lease in place as Dan asked, it probably has an early termination clause. If you were to choose to exercise that option, fine. If it doesn't or it the terms are not agreeable to you, then probably you will have to continue making payments. There is a ton of legal stuff revolving around this situation you can find on the net.

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
1 vote Thank Flag Link Sat Aug 7, 2010
The house is still your landlord's until the trustee sale takes place. At that point either a 3rd party or the foreclosing lender will take ownership of the home. In most cases the landlord doesn't have the funds to return the deposits nor do they usually care to return them. It's sad!

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.
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Tue Nov 2, 2010
Gilbert, REALTORS do not give tax, legal or financial advise so you do need to consult these professionals.

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:

http://www.azsos.gov/public_services/publications/residentia…

I hope this helps.
Web Reference: http://www.DonaldKeys.com
0 votes Thank Flag Link Sat Aug 7, 2010
this is best asked to an attorney. Different states have different foreclosure laws. Also the fact as to whether or not you have a valid lease comes into play here. Sorry to be so vague, but you need to be put in touch with someone who knows all of the legal parts to this.
0 votes Thank Flag Link Sat Aug 7, 2010
usually the owner does not get any money from the auction unless it sells for more than the owe plus teh cost of the foreclosure which if it was teh case, he would be able to sell it now and not have to go to foreclosure. As a landlord most state laws require the landlords to keep security deposits in a seperate account and not deposit it in their own personal use accounts.

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
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sat Aug 7, 2010
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