QUESTION
Can we be evicted if the landlord is behind on the mortgage?
Asked on Jun 26th, 2012 on Landlord and Tenant Law - Arizona
More details to this question:
I live in Phoenix, AZ and I'm renting a house. We are always on time with our monthly rent payments. Recently I found a sign on my door stating the mortgage needed to be paid. We have a family with a 2 year old and I don't want to be evicted because the landlords is not making the payments. I read the Lease Agreement and I can't demand proof of payment nor stop paying the landlord otherwise we would be in default. What can we do to make sure we are not surprised with an eviction because the landlord is not paying her mortgage?
1 ANSWER
Yes, you can be evicted if timely pay rent but the landlord does not pay the underlying mortgage. The landlord/owner is in default under the contract with the owner's lender, but the landlord/owner is not in default under the rental agreement with you (tenant) unless the lease includes such a provision (e.g., the AAR February 2008 lease form, lines 206 to 208, provides that allowing the rental to become the subject of a trustee's sale to be a default by the landlord). If you do not pay the rent you WILL be evicted and the judge will not permit evidence about whether or not the property is being foreclosed (except as stated above). If you have a "bona fide lease" (which is defined by federal law and beyond the scope of the answer to your question), then federal law will allow you to remain in the rental for not less than 90 days after the foreclosure.
Answered on Jul 06th, 2012 at 8:09 PM