If a property is foreclosed on by a bank and it is tenant occupied who is responsible for the tenant’s deposit?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a property is foreclosed on by a bank and it is tenant occupied who is responsible for the tenant’s deposit?
Asked on May 19, 2009 under Real Estate Law, California
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
The landlord is responsible for your security deposit but if his property is in foreclosure he has money problems and it's a good bet that you will not see that deposit. However, there is possibly something that you can do. Until the foreclosure is completed, the Landlord is the legal owner and you are still responsible for making rent payments, if you do not you can be evicted. But if you know approximately when the foreclosure is taking place you could stop paying rent the month before. Even if the Landlord sued for eviction it would take about that long to get you out anyway. Just make sure not to stop paying rent altogether. Note: You will want to keep that 1 months rent set aside. If the Landlord is able to get his property out of foreclosure you may have to come up with that money. So have it available.
Once the foreclosure is done, and if you have not been able to withhold 1 month's rent, then you would have to sue your Landlord for the amount of the security deposit.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.