Home Buying in Phoenix>Question Details

Owa, Renter in Phoenix, AZ

what is a trustee sale? Does it mean the house I'm renting is in foreclosure?

Asked by Owa, Phoenix, AZ Tue Mar 27, 2012

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Owa, Sean's reply was the most detailed and accurate for Arizona:

IF an Owner-Occupant purchases the home, they must give you 90 Day Notice to Vacate. Your Lease will be then be void.

IF an Investor purchases the property, they must honor the remaining time on your Lease.

ALSO: You do not have to let people knocking on your door in... so if someone tells you they want to bid at the Trustee Sale and offer "the world" to let them in, you do NOT have to do so. Your Lease is in effect through the Trustee Sale... so be aware you do have rights under AZ Landlord-Tenant Rights.

You should have received Notice of the DATE of the Trustee Sale. If you did not, feel free to call me with your address, and I'd be happy to look it up for you. It's a lot of unexpected stress to have your Leased home go up for Trustee Sale, something I'm sure you are not excited about.

Susie Thompson, Associate Broker
Russ Lyon Sotheby's International Realty
Cell: 602-803-3800
0 votes Thank Flag Link Tue Mar 27, 2012
A trustess sale means the property is in foreclosure. If no one buys it at the trustee sale, it will revert back to the bank. The bank will have their assest manager assign the home to a realtor and it will be pput on the market as an REO. The agent assigned the listing will contcat you and in most cases offer you cash for keys. This means they will pay you a dollar amount to vacate the property on your own within a specified time frame. If you do not do so they will start the eviction process.

If the home does sale at the trustee sale the new ownerr will contact you. They may ask you to vacate the property within a certain time frame. If you do not vacate the property in the time they allow youthey can start the eviction process.

Best of luck to you,
Kawain Payne, Realtor
0 votes Thank Flag Link Tue Mar 27, 2012
I would call your landlord right away. As a tenant you do have rights. This just happened to my client 3 months ago. Feel free to call me with any questions that you have.

Stan Abraham
602 618 0892
Prudentail AZ Properties
0 votes Thank Flag Link Tue Mar 27, 2012
A notice of trustee sale starts the foreclosure process from the date the notice is recorded with the County. Arizona laws gives a homeowner 90 days from the recorded date to either pay the balance in full or the property will be up for auction at the court house downtown or at the trustees office.

In 2009, the Obama administration signed a new law requiring the new owner of a foreclosed property to give the tenants a 90 notice if the buyer intends to occupy the property as a primary residence or honor the lease agreement if they are an investor. Please find some information on the law below:

http://www.positionrealty.com/pdfdocs/Protecting_Tenants_In_Foreclo…

It's currently cheaper to buy than it is to rent so if you can qualify for a mortgage, then possibly now would be a good time to find out if you can qualify for a mortgage. We have a lenders that can provide loans with as little as 1% down. Please give me a call to discuss in further details.

Sean Heideman, Broker
Position Realty
Office: 480-213-5251
0 votes Thank Flag Link Tue Mar 27, 2012
Yes it does. If you have received a posted notice the date on it is the date of the foreclosure auction on the home you are living. You are not alone in renting from someone who was not making the payment with your rent. One possibility is to contact the bank and see if you can rent from them until the home sells. This will depend on whether the bank chooses to purchase it at auction or let it go to a 3rd party buyer. It is not typical but I have seen foreclosures with tenants. Of course this is a short term fix a best. Good luck to you and please contact me if you decide you want to purchase a home!
0 votes Thank Flag Link Tue Mar 27, 2012
Oh how I hate to hear someone renting has not been informed of a pending trustee sale by their landlord. It would be in your best interest to contact a legal type who can go over your lease and see what your rights are. In many cases tenants can stay in foreclosed homes for a few months after a trustee sale... however this is best determined by a legal professional reviewing your lease.

You should also contact an attorney prior to doing anything like not continuing to make your rent payments. Many tenants have gotten into legal trouble by taking this route without good legal counsel.

I wish you well and hope all is good soon.
0 votes Thank Flag Link Tue Mar 27, 2012
The Trustee Sale is near the end of the foreclosure process, it is when the property is taken back by the lender or sold to another party.

Depending on your lease etc you may or may not have rights to stay. I would contact the property manager for the property you are living in and or reach out to an attorney.
0 votes Thank Flag Link Tue Mar 27, 2012
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