I often get calls from renters who say they need to find a place immediately due to a trustee sale notice being placed on the door of the home they have been renting. Fact is that tenants rights have come a long way in Arizona and you are now protected from such things.
Bona Fide Tenancies Survive Foreclosure For At Least 90 Days:
The new law requires the immediate successor in interest at foreclosure (i.e. buyer at sheriff’s sale) to: provide bona fide tenants without leases with 90 days notice prior to termination of the tenancy; or allow bona fide tenants with leases to occupy the property until the end of the lease term; unless the buyer at sheriff’s sale wishes to occupy the property as a primary residence, in which case he must serve the tenant with a 90 day notice as above.
Information from: the law office of Diane L. Drain
Most homes do not sell at the trustee sale. The lender who owns the loan ends up with the property. This is considered an REO. Banks are not in the business of real estate, however. They hand the property over to an asset management company who then assigns it to a Realtor to be marketed and sold. A Realtor may be coming by to offer you an incentive to vacate the property if you are under lease. Do not give these Realtor’s a hard time. Answer the door they may make you an offer you can’t refuse.
