I have a rental property that is on the market as a short sale. I have a tenant in the property, 3 months prior to her lease being up we got notice that the house would be foreclosed. We told her that she could continue to live rent free until the foreclosure took place then she would have to move. In the meantime we stopped foreclosure proceedings and put the house up for short sale. Her lease was up 2 months ago and she continues to live rent free in the house and we would like her to move now so the house will be easier to sell. She has lived rent free for over 6 months now. She states that we have to give her a 60 day notice to vacate. Is that true? We live in the State of Arizona.

10 days written notice is what I found.

Well first YOU don't stop the foreclosure unless you paid some on the amount due, the owner does not start or stop the procedure. You may ask the bank to give you more time.

Next you don't have to make her move merely because of a short sale, the new owner will merely have her as a tenant. When they buy the property.

She is still a renter merely at no money, so your options, give her a written 30 day notice that payments will be a certain amount. Or according to the notice required in the original lease that she has to move.

A reason why no good deed goes unpunished, you should have never allowed her to stop paying rent, and should have keep sending the rent money to the mortgage company to help pay some of the debt.

You would have to give at least a 30 day notice to have her move, but the lease went to a month to month rental if not renewed, if it states 60 days, it is very likely that is what the courts would view as the valid time frame.

The 10 days from my view point was only for non payment of rent, since the current rental agreement is for zero money, they can't be late on the rent.

We told her that she could continue to live rent free until the foreclosure took place then she would have to move.

WHY would you do such a thing? Was this agreement in writing? Did you notify her that foreclosure proceedings had been stopped? If so, when?

When the lease ended she became a month to month tenant. Arizona law then requires you to give her one Full rental period's notice. So if rent is due on the 1st of the month, you can give her a notice to vacate on 10/31 as long as you serve such notice prior to 10/1.

However, if you informed her of the termination of foreclosure proceedings accompanied with a notice that she had to resume paying rent and she has not, then you can give her a 10 day pay or quit notice.