3 responses to “IS IT A FELONY IN AZ TO COLLECT RENT AND NOT PAY MORTGAGE?”

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  Classy Granny November 21st, 2010 at 08:15

  Phyllis

  You still own the property until the bank takes it away from you and you are breaking no laws by collecting rent on what is still yours. Once the bank takes it you will be asked for the names of your tenants so the bank can notify them of the change in ownership and advise them as to where to send future rent.

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  Landlord November 23rd, 2010 at 19:19

  Jay

  No, it isn’t even a misdemeanor, it is not illegal not to pay your mortgage.

  It will be illegal to collect rent after Aug 12th though.

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  Ed Atun November 27th, 2010 at 01:09

  Michele

  Your original loan papers had an “assignment of rents” clause. You agreed that, if you could not pay the mortgage, you would at least send them the entire amount of the rent each month. That is fair.

  It is borderline “illegal” for you to cheat your lender, but no policeman is going to arrest you. You are probably breaking a law…. one of the Fraud Statutes. You are committing fraud.

  Arizona is trying to crack down on landlords who lose the property and do not return the tenant’s security deposit. Be sure you don’t do that.