I am a renter of a home in Arizona. My lease is through November 2007. The owner passed away. The family informed me that the house is going into foreclosure if they cannot sell it. If the house goes into foreclosure can the bank break my lease?

No, they won't have to. In the case of a foreclosure your lease becomes invalid. Ask the family if you can move early Or maybe they will let you buy the house.

Well if you are paying rent, why are they not using that money to pay the mortgage? I would think that should be a honest question to them.

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Originally Posted by Dawn Marino

I am a renter of a home in Arizona. My lease is through November 2007. The owner passed away. The family informed me that the house is going into foreclosure if they cannot sell it. If the house goes into foreclosure can the bank break my lease?

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Thank you very much for your quick response gentlemen. The owners son mentioned that the house could go into foreclosure due to his mothers estate going into probate. They offered me to have the first opportunity to buy. I am not interested due to the price they are asking in order to break even. I am wondering, since the owner has passed, her estate is in probate, legally am I obligated to fulfill the lease agreement. Can I assume that the lease is void due to the death of the leaser. She was the only one I had an agreement with. Also, if the house was to go into foreclosure whom do I pay? Do I put the money in escarole. What will happen to my deposit? Sorry, I'm a little stressed! Thank you so much for your advice. Dawn

No the lease is not void due to the death of the landlord, especially, if the estate is in probate. An estate is a legal entity entitled to carry on the business of the deceased. So the lease continues in force. Unless informed otherwise you continue to pay rent as you have. You can ask the son whether there is a change in the way you pay rent or for the name and contact info of the executor of the estate. DO NOT under any conditions make any checks or money orders payable directly to the son or anyone other than the deceased or the "Estate of <insert deceased name>". As long as you make payments like that, they are required to use that money for the maintenance of the estate.

You should also ask the son (or executor) that you be informed immediately if they default on the mortgage. At that point, you request release from the lease. From the time they default to the when the lender actually forecloses should be at least a couple of months, giving you time to move.

Your deposit is another matter. If your state requires that lease deposits be deposited in a separate account, then its safe. If not, then the deposit becomes a claim against the estate. I'm not sure how that claim will rank against other debtors. I would suggest that, once you know your move date, you don't pay the last months rent and tell them to take it out of the deposit.