Who do I get my deposit back from?
Submitted by dana
from CA
- 05/08/2009 - 1:55pm
I thought I read somewhere that the new owners (I.e Bank) have to give me back my deposit and not my landlord once it is foreclosed on. My landlord definitely doesn't have the $$ to give back, as he is living off of my rent. Also I found out he illegally took more then is allowed by CA law, (2 months worth) I didn't know this at that time, but I have now become much wiser to all things rental and foreclosure related.
If he has to give me back the deposit, should I just not pay him the last month I owe him before the Sale? NOD was in Feb 09. I believe the sale will be in mid June 09, so I don't want to pay him Junes rent if he is not going to give me back my security deposit.
any thoughts?
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You have to recover the deposit from the prior owner, the new owner never received it and does not owe it to you. Even if you had a recorded lease agreement with the prior ownerit would likely be wiped out by the foreclosure.
Witholding rent would violate the terms of your lease, and your landlord would have every right to begin eviction proceedings if they so chose (seems unlikely given the state of things). That said it may be something to consider.
I'd suggest confronting the landlord about your concerns and ask if he'd be willing to put the deposit in trust with an attorneys office so that you could be sure it was repaid as long as you held up your end of the lease.
Also note that the law has pretty stiff penalties for landlords who don't return deposits. Read up on those as well, though cash in hand is always better than the promise of extra money through fines that you have to try and collect down the road.
stop paying rent home in fourclouser what will he do
kick you out iam living in a fourcloused home right now
saving up money to move my family its been two monthes stop puting money in his pocket and start puting it in yours
The home i am renting went up for foreclouser sale March 26
I stop paying rent now landlord is serving eviction do I have any right?
Did the property sell at trustee sale? When you say "the landlord" are you referring to the investor who purchased the property at trustee sale? Technically when a property is in foreclosure you still owe the rent on the property. If the property did not sell (the sale was postponed etc) then the owner does have the right to evict you for non payment of rent.
Sean, where did you get your legal wall paper, the zoo?! Whatever law school you went to, you need to get schooled over again. It's a fact that whomever takes possession of the property after a lein sale also take responsibility for rent deposits and any other debt attached to the home. Quit giving the wrong advice if you don't know what your talking about. I rarely respond to these forums, but yours just rubbed me the wrong way. Bad advice to a person whom really needs good advice ends up adding salt on to the wound sort of speak. Please think about this before responding to a question...
I just called the trustee sale company today on the foreclosure sale on the house I'm renting and was told that in CA, the new owner does NOT assume responsibility for the deposit. So much conflicting info on the internet. I will be calling local housing agency tomorrow.
Im renting from a real estate agent and she rents out homes for home owners. I received a paper of auction on the door Ive been living here for 2 yrs I only had a year contract. The home owner never asked to sign another contract how do i get my deposit back thru the real estate agent or home owner! Do i continue paying rent neither real estate agent or home owner let me know they lost the home!
The rents are due regardless of whether or not the owner is making the loan payments. Your lease agreement (or in your case the month to month tenancy) provides you housing for a fee (rent payment). Since you are living in the home and getting the benefit of the housing then you are being provided services in exchange for payment.
If the property goes to trustee sale you would be contacted by the new owner (bank or an investor) and they would be required to give you notice to move. In California that would be 90 days. They may also negotiate a cash for keys agreement to offer you an incentive to vacate by a certain date.
We do know that many tenants stop paying their rent when they feel that foreclosure is imminent. They realize the they are not likely to be evicted or have their security deposit returned.
Home I am renting is in pending status on short sale since 8/1/11. I rec'd 60 day notice on 8/11/2011. I live in CA. Question is what happens if the home is sold prior to the 60 day notice? Is the 60 day notice null and void? Also, when is landlord due to pay me back my deposit in either of these 2 outcomes?
Hi Ida,
If the house goes to foreclosure the new owner is not responsible for returning your security deposit. They would however, be required under the Protecting Tenants in Foreclosure Act to give you a 90 notice to vacate or honor the terms of your lease. Oftentimes the lender/investor will offer you a cash for keys incentive to vacate by a certain date. This agreement would not prevent you from taking the prior owner to small claims court to collect your deposit. Keep in mind that if you did not make your last rent payments to the prior owner that could offset the deposit held.
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