Landlords must reveal foreclosures

Mortgage Bankers Association Reports Home Foreclosures On The RiseThe Arizona House has given final approval to a bill requiring landlords to notify tenants when their property enters foreclosure, AP reports.

House Bill 2281 amends the Arizona Residential Landlord and Tenant Act to require the owner to provide written notice to tenants within 5 business days of receiving a formal notice of trustee’s sale. The law previously only required notice if a provision was in the lease.

The bill is sponsored by Rep. Steve Smith of Maricopa. He pushed the bill because renters complained that landlords gave them no notice before they were told to leave because the property had been taken over by a bank.

The House passed the bill on a 54-2 vote Wednesday. A final Senate vote is required before the bill goes to Gov. Jan. Brewer.

 

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