An article last Friday, by the Associated Press, drew attention to a lesser-known consequence of the foreclosure crisis: renters being forced out of a lease when a bank takes possession of the home.

From the article: “You’re paying your bills, but your landlord isn’t. And you’re the one holding the eviction notice.

This is becoming an all too familiar scenario for thousands of renters nationwide who have become the unintended victims of foreclosures. Banks are booting good tenants onto the streets with little to no notice after seizing a property from a delinquent owner, ignoring tenant leases.

In the most troubling cases, some families are forced into shelters for temporary housing because they have little savings to cover moving costs, first month's rent and a security deposit at another apartment.”

Fannie Mae and Freddie Mac, which together own or guarantee more than half of the nation’s mortgage debt, said that they would begin programs in January to assist renters in properties they’ve foreclosed on.

“Fannie Mae this month pledged to change that with its new renter policy starting in January. The plan will allow renters living in foreclosed properties to sign new leases with Fannie while the property is up for sale, or give the tenants money to relocate. Fannie has yet to establish the length of the leases, and the amount of move-out assistance will vary by state and property.

Freddie Mac says it will unveil a similar program in a few weeks.”

If you receive a foreclosure or eviction notice on the property you’re renting, here are some steps you should take:

If you haven’t yet received a foreclosure notice, but think your landlord may be heading that way, go to the County recorder’s website (http://recorder.maricopa.gov/recdocdata). You can research their records by owner name, or, to see all property in Maricopa County in foreclosure, simply change the document code field to N/TR SALE and click search.

In Arizona, the foreclosure process takes at least 90 days (from the first foreclosure notice to the actual sale). If you find out about the foreclosure relatively early in that process, you’ll have some time to find a new place to rent.

In Arizona’s renters’ rights are provided by the Residential Landlord/Tenant Act, which can be found at the Secretary of State’s website: http://www.azsos.gov/public_services/Publications/Residential_Landlord_Tenant_Act/.

Some states, including California and Illinois, have recently passed legislation giving renters a grace period, ranging from 30 days and up, to stay in a property after it's been sold in foreclosure. Unfortunately, there’s no such law -- yet -- on the books in Arizona.

Ask the landlord for all the relevant information -- most importantly timelines -- related to the foreclosure. Ask about a refund on your security deposit -- when you should expect to receive it.

Step 5: Contact the lender or lawyer handling the foreclosure.

Ask about the timeline for the foreclosure process and when the lender will require you to be out of the house. Ask the lender if you can stay in the home until it’s sold -- or if they’re offering cash assistance for moving out. These are both options Fannie Mae and Freddie Mac will likely offer to renters.

What do you think? Have you been forced out of a rental property because it went into foreclosure? Click on the “Comments” link and join the discussion!