Congressional Act

• The Protecting Tenants at Foreclosure Act of 2009 was enacted to help tenants avoid sudden evictions. Since most states did not provide their tenants with legal protection against foreclosures, tenants had little choice but to move or face homelessness after banks filed for foreclosure against their landlords. Congress passed federal legislation to help tenants in foreclosed homes. The Protecting Tenants at Foreclosure Act provides tenants with up to 90 days to find alternative housing after banks institute foreclosure proceedings.
  
  

Paying Rent

• The federal law allows you to stay in your home for at least the 90 days after the bank files for foreclosure. If you have more than 90 days remaining on your written lease agreement, then you can finish out your remaining lease period, and the bank cannot evict you. However, you can only legally remain in your foreclosed home if you pay rent. You must be current in your rent obligations and pay all future rent payments at the existing rental fee to your new landlord or bank. The foreclosing bank must notify you of changes in ownership.
  
  

The Landlord and Tenant Act in Arizona

• The Arizona legislative assembly passed new legislation after Congress enacted the Protecting Tenants at Foreclosure Act as an amendment to the existing Landlord and Tenant Act. Under the new legislation, your landlord must have given you written notice of any pending foreclosures before you signed your lease agreement. Furthermore, your landlord must have included this notice in the terms of the lease and provided you with a written notice of any foreclosure sales and dates. If he didn't notify you, then you have specific legal rights to seek an injunction and refund of your security deposit.
  
  

Opportunity to Cure

• If your landlord failed to provide you with written notice before you signed your lease, then she still has 10 days to give you the written foreclosure notice after you notify her of the notification failure. After 10 days, you can sue for damages and injunctive relief in court. Your landlord must also give you information about the foreclosure proceedings, including sale dates and phone numbers to the court where the foreclosure is filed.
  
  

Considerations

• Since real estate laws can frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.