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90 Day Tenant Foreclosure Law - Arizona Courts Won't Let You Around It!

In May of 2009, President Obama signed a law called the "Protecting Tenants at Foreclosure Act of 2009".  One part of this federal law caused an important change with foreclosures and the rights of a tenant after a foreclosure.   It states that the purchaser at a foreclosure sale is required to provide a bona fide tenant at least 90 days' notice before the tenant has to vacate. The new law is national in scope so tenants, no matter what state they live in, now have time to adjust their lives in cases where property owners go into foreclosure.

This law was recently challenged in an Arizona court by the Bank of New York and the bank lost.

If you are the new owner of a foreclosed "tenant occupied" property - here are the basics:

Unless these two rules apply, tenants can stay in the home through the end of their lease:

1) The new owner wants to occupy the property as a personal residence,  or

2) They have either a month-to-month lease, or a non-written lease.

Otherwise, follow these tips:

  • Just give the tenant a full 90 day written notice
  • If the tenant is not paying rent, or is in default of the existing lease, you still have rights and can evict.
  • If the tenant is good, is paying rent, has a lease in place, and you, as the new owner, decide not to continue the lease - you can provide the tenant with a 30 day notice.

 If you are a tenant - it's simple - just move - because eventually you will have to!

(Photo from iSTOCK Microsoft clipart)

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This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: .


Comment balloon 1 commentGabrielle Kamahele Rhind • May 17 2011 07:43AM
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