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New law: Renters can keep renting, even after foreclosure

Reported by: Jodie Heisner
Email: jlheisner@abc15.com
Last Update: 7/22/2009 10:03 am
(Getty Images)
(Getty Images)
Video Click the play button on the video window to the right to see the story

PHOENIX - Renter Stephen Dykes emailed ABC15.com about his desperate situation.

“There are no options, who do you turn to?”

Dykes was recently laid off and is barely making the rent on his Surprise rental.

But then it got worse.

“We got a foreclosure note stuck on the door,” said Dykes.

The house he’s been renting for the past four years is going up for auction in August.

“I’m worn out and the mental stress is there,” said Dykes.

Sadly, thousands of Valley renters have found themselves in similar situations in recent months.

But if a landlord isn’t paying the mortgage, should you pay the rent?

“Yes, yes they should continue to pay,” said Attorney Jeff Kastner with Community Legal Services.

Kastner said just because the landlord isn’t making his payments, doesn’t mean you should fall behind. A new law passed in May can help you stay in the home.

“The new buyer at the foreclosure sale has to honor any lease that was entered into prior to the foreclosure,” said Kastner.

That’s the case, unless that buyer wants to make the home their primary residence, then they need to give you 90 days notice.

If you’re a month to month renter, you also get 90 days to move out.

If you stop paying, you’re out of luck. That new owner can force you out of the home.

As for Dykes he’s decided the situation is just too much.

“So long Arizona,” he said.

He’s moving to Kentucky to live with his in-laws and his family, which is already there.

But if you’re a renter in this situation, keep paying. You have more time than you think.



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