Foreclosure in 85012>Question Details

Fearless_dave, Home Buyer in 85012

In Maricopa Couty, AZ, can a landlord who has defaulted on a the mortgage, pocket rent monies after basic operating expenses have been paid?

Asked by Fearless_dave, 85012 Tue Dec 1, 2009

I currently rent a condo in Maricopa County, AZ. The owner has defaulted on the mortgage and the property is to be sold at auction. I know I must still pay rent to him until his name is off the deed but can a landlord in default of the mortgage retain rent monies from a tenant in excess of what it cost to maintain the property? That is to say, if the landlord is not paying the mortgage, and he has collected rent, can he pocket any money after normal maintenance costs, i.e., HOAs, repairs, taxes, are paid? I have heard a landlord cannot pocket any rental money past these basic costs if he/ she has defaluted on the mortgage. Any thoughts?

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Hi Dave. The landlord can and probably will pocket the money, but he/she is not legally entitled to do so. Unfortuantely, there is not much you can do about this. His mortgage company or other forces that be may be able to do something about it, but frankly, those people can barely handle their own affairs at this time. The best thing you can do for yourself is to find another place to rent and soon. Make sure your new landlord is current on their mortgage if their is one. Another option is to buy a home by jumping on the FHA mortgage train and getting yourself an $8,000 tax credit.
0 votes Thank Flag Link Thu Dec 3, 2009
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