Legal Question in Real Estate Law in Arizona

House I am renting from is being foreclosed on

I am renting a house. I just recieved a notice of trustee's sale on my door. The landlord has been telling my husband and i, since January that he is trying to get a loan modification on the house. The last two time I have talked to him he said things are fine but his answers keep changing. I don't trust his word. I need to know what are my options are. Can he get a modificationon on the house while it's in forclosure? Should I still pay rent? We just inherited a house that we will be moving into when our lease is up. Is it possible to get a loan modification on an investment property?The auction will take place next month.


Asked on 4/07/09, 1:56 am

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: House I am renting from is being foreclosed on

The questions you raise are good questions and more facts are needed to answer them. It seems to me that you would like to terminate the lease, but, do you want to do so now? How many months remain in the lease term. It seems obvious that the landlord is not using your rent payments to pay his mortgage, and depending upon the terms of the lease, the landlord may be in breach of the lease. Was he in default on his loan when he leased the property to you?

I think that you could not pay rent and see if he will try to evict you. This may be a way to terminate the lease. The landlord's ability to modify his loan depends upon a number of factors, but I doubt that he can do so on a rental property, unless he has a lot of income and has good credit standing.

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Answered on 4/07/09, 11:22 am


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