what should I do???

Asked by Alice Hoeppner, Glendale, AZ Thu May 29, 2014

I live in Arizona.I'm living in a home that we have got a notification is going to be auctioned.the management company tells me we need to continue to pay rent because until the auction the homeowner still owns home. but this sounds a little fishy to me could someone please help do I pay the rent do I vacate the property

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4
Lisa Markham, Agent, Tucson, AZ
Wed Jun 11, 2014
I used to foreclose on homes in AZ, you need to contact the mortgage company that is foreclosing on the property and advise them that you are solely tenants. They will ask that you provide a copy of your lease agreement. In the state of AZ, the lender must honor the lease until it expires. If the house sells at auction and is sold to a private individual they too will have to honor the lease or will most likely pay for your moving expenses. I hope this helps.

Sincerely,

Lisa Markham
Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
(O) 520.612.0480
(M)520.240.9602
lmarkham@envoymortgage.com
https://lmarkham-envoy.mortgagewebcenter.com
0 votes
John Moran, Mortgage Broker Or Lender, Denver, CO
Fri May 30, 2014
I was about to type my answer, then I read what James Wehner wrote and he covered it exactly as I would have said it. His answer tells you everything you need to know.
Web Reference:  http://www.azmortgagepro.com
0 votes
Phil Rotondo, Agent, Melbourne, FL
Fri May 30, 2014
You should consult with an attorney to be sure.
0 votes
James Wehner, Agent, Scottsdale, AZ
Thu May 29, 2014
I'm sorry to hear about the unfortunate situation you are in. You should contact a real estate attorney regarding your specific situation.

The property management company is correct. The homeowner has until the trustee sale auction starts to pay what they owe to their lender to get their loan reinstated. Therefore that would then cancel the trustee sale. If you would stop paying rent, that could make it more difficult for the homeowner to reinstate their loan. Additionally, you may be contractually bound to pay your rent and still be required to abide by your lease terms, otherwise the management company may exercise their right to evict you for non- payment of rent.

There are also laws to protect tenants in foreclosure situations.

Best regards!
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