Property in Foreclosure

Asked by Pjd, Phoenix, AZ Fri Jul 13, 2012

I am renting a property that has gone into foreclosure. I think the property manager has been taking the rent money and not paying the owner. I have tried to contact the owner her lives in San Diego via a letter and email. the letters were returned and the email was never responded to. I have also tried to reach this owner by phone but there is no listing. I am thinking of filing a complaint with the AZ Board of Realtors and the Realtors Assoc. Also the property management company is in financial trouble and I am concerned about getting my deposit back when I move. Do I have right to get my security deposit back now? The owner of this property has not paid the rent in over a year. The property manager said they are holding the security deposit, not the owner. But since they are in financial trouble I am afraid that when it comes time to move they will no longer be around for me to get my deposit back??

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Ray Teerlink, Agent, Chandler, AZ
Thu Apr 4, 2013
There is a law enacted that will protect you from this exact scenario. It is called the "Protecting Tenants at Foreclosure Act of 2009".

It says that you cannot be forced to move out of your home on a moment's notice but must be allowed a minimum of 90 days. Under certain circumstances if the lease is longer, your lease must be honored or (here's where it gets good) THEY HAVE TO BUY YOU OUT OF YOUR LEASE! Give me a call or shoot me an email and I'll fill you in and send you a link to where you want to go.

Ray Teerlink
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Margaret Abb…, Agent, Mesa, AZ
Thu Jul 19, 2012
Sad to say I hear this a lot. I would contact an attorney to see what your rights are. You can also go on line and get a copy of the "Landlord Tenant Act " to see what legal rights and recourse you have.
You are a very honest person to continue to pay the rent knowing this. However, if the landlord still owns the property until the end of your lease term, then you are good and just finish out the lease. Do not renew your lease and move on.
The very best to you!
Margaret Abbott
"Az. Homes and Properties"
Scottsdale Az.85260
0 votes
Joyce Mitche…, Agent, Apache Junction, AZ
Sun Jul 15, 2012
Pjd, Some of the facts that are not stated but important. Do you have a lease? Need the
expiration date. Is the deposit stated in writing -- like, to be held by property owner or
in a trust account approved by the State of Arizona or by the property manager?
Is the property manager a licensed real estate agent or a Realtor? Do you have date
that the property is to be vacant? The Arizona Department of Real Estate may be of
help phone: 602 771-7766 2910 N 44th St, Phoenix, Az 85018
List of licensed agents. Possibly list of attorneys that specialize in real estate.
Small claims court may be helpful. Good luck. Joyce Mitchell Real Estate Broker
0 votes
Jennie Miller…, Agent, Phoenix, AZ
Sat Jul 14, 2012
That is terrible to hear that your family might have to move. While you might have suspicions about the property manager taking the owner's money, that is something the owner (if there is an issue) would have to pursue. As long as you have paid your rent on time and cared for the home, you have fulfilled your obligation to the lease. While you may have tried to contact the owner via mail, sometimes the tax records don't get updated when landlords move or change their mailing address. Based on what you have shared, it doesn't sound like you have a complaint that the Department of Real Estate would entertain. You aren't able to get your security deposit back until the lease is up, you have given notice to the property manager based on the lease terms, your are current with your rent and/or late fees, you have moved out of the home, you have returned all keys and possession of the home back to the property manager, and the home is in the same or better condition than when you moved in. There may be other terms on the lease that you may have to comply with, but this is this a rough list. Protect yourself and make sure that you are following the terms of your lease to a 'T'. Property Managers are obligated to keep security deposits in a seperate trust account that is seperate from the operating account of the company so your security deposit is not comingled with with company's operating funds and expenses. This was a great question and please let me know if I can help in any other way.
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