Paying Rent but Landlord is Not Paying the Mortgage

[ghwlynn]

My question involves landlord-tenant law in the State of: Arizona

I have been a model renter for the past 2 years. A couple weeks ago a man came banging on my door looking for the owner, guess he didn't believe me when I said that I was not her, urged me to call the mortgage company and handed me a letter. Because of all the issues with renters getting forced to leave their homes due to their landlords not paying their mortgages, I immediately contacted my landlord and asked her if she was paying her mortgage. I have to look out for my family and decided not to be shy about it! She explained to me that she was in the process of trying to negotiate a better intrest rate and since the mortgage company refused to work with her while she was current, she had not made the last two months payments. She told me not to worry because if she decided to dump this house she would give us plenty of notice and that we could stay rent free during the foreclosure process but assured me that she was still working with her mortgage company. I know that we signed a rental agreement with her NOT her mortgage company and that we are obligated to pay our rent. BUT at the same time, I don't feel comfortable sending her all of this money when I know she isn't paying her mortgage. I'm wondering, instead of refusing to pay her rent, if I can place my rent payments into a savings account and send her a copy of the deposit statements every month. That way, if she does come to an agreement with her mortgage company and they demand a lump sum, I can just send her the money from the account. If she decides to dump the house, I will have money set aside either to move, or have a nice down payment to buy a home. Anyone have any thoughts on this? If the house does end up in foreclosure, would the mortgage company negotiate a sale with us so that we wouldn't have to move? My family is very happy here and would really love to stay in this house.

[Mr. Knowitall]

If you don't pay your rent while she owns the property your landlord can evict you. Also, if you aren't current on your rent when the house is foreclosed, you would lose any right you might otherwise have to continue your lease under the "Helping Families Save Their Homes Act".