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It's perfectly legal
You have a legally binding contract with the LL to pay rent, so you have to pay rent.
It's like buying a toaster oven at the appliance store. The owner may not be paying his suppliers, but you still have to pay for the merchandise. One thing has nothing to do with the other.
Legally the LL is not required to tell you about the foreclosure, although you are supposed to get a notice from the title company when a trustee sale is imminent. By the way that's California law, you are in AZ so perhaps it's different.
But the LL could be in foreclosure for months or even longer, before the banks schedules a trustee sale. You only get notified (in California at least) when the trustee sale is scheduled.
Regardless, you have to pay rent because you have a legal agreement to pay rent. It has nothing to do with whether the landlord pays his mortgage or not.