It is possible that the owners may not know they are in foreclosure. Believe it or not, a lot of owners don't even know they are in foreclosure, possibly because the county government has an outdated or incorrect mailing address for them or maybe they don't open their notices from their lender b/c they pay their bills online. There a any number of reasons that they may not know, or they could just not be telling you the truth. Regardless, you do have rights as a tenant.
Your rights as a tenant are spelled out in the Arizona Residential Landlor Tenant Act (ARLTA). http://www.azsos.gov/public_services/Publications/Residentia
. Tha's the link to this important document & will give you the information you need about your rights. If your unit is in forclosure, goes to auction and is either bought at the auction or goes back to the bank, your lease may no longer valid, and you could be evicted. You need to learn how you can protect yourself.
To confirm if the property was or is in foreclosure, you could do the research yourself or have a Real Estate agent do it for you (possibly a bit faster). Go to http://www.Maricopa.gov.
Then, on the left side under "Quick Links," click on "recorded docs." Now, enter the owner's name & search for a document with a document code of "N/TR SALE" to see if your unit was or is in foreclosure. It's also possible that if it was in foreclosure, that it has been cancelled. You can search for this by using the document code "C/N D/T." But, once again, you may be better off allowing a Real Estate agent help you with this, b/c if your owner is really in foreclosure, an agent can help you by helping the owner of your unit by giving everyone the knowledge & information they need to make good decisions.
I hope my information has been helpful.