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  1. #1
    Join Date
    Aug 2013
    Posts
    2

    Default How to Get Your Security Deposit Back After Foreclosure

    My question involves landlord-tenant law in the State of: Florida

    I began receiving notices over two years ago that the home I'm renting is in foreclosure, I had asked the management company about them and was repeatedly told that the landlord was NOT in foreclosure. I knew it was B.S., because I went thru foreclosure (which is why I'm renting), but it really didn't affect me as I was still in the property so I continued to pay my rent on time per my lease.

    Anyway, I just found out that the home I'm in is indeed in foreclosure (not a shock) and in fact will be auctioned in about two weeks. The way I understand the new federal law is that I won't have to move out before the end of my lease (which is December 1st), they'll either have to honor the lease or they have to give me at least 90 days...either way, I'm cool there.

    My issue is two fold:
    1. Come September 1st, who do I pay my rent to? My landlord will no longer own the house (auction is on Aug 29). I will continue to pay my rent as long as my lease is honored (meaning maintenance is taken care of--Lawn and Pool mostly).
    2. My LL has a SIZABLE deposit ($7,000). When can I expect that back?

    I had called the management company and I had asked if I could have a partial refund of my deposit (the over and above of the standard monthly rent-which is $2200/mo). She said no problem, but that was when the house was being listed in last-ditch, futile effort to sell before auction. Since they decided to let the house foreclose, now my management company will not return my calls regarding refunding the security deposit, even the partial.

    So, what can I do?

    Thank you!

  2. #2
    Join Date
    Jan 2006
    Posts
    27,065

    Default Re: Rental Home in Foreclosure

    You pay rent to whomever owns the house or their authorized agent.

    The deposit will likely be a problem. You will have to chase the person that is holding it. Unless the current owner transfers the deposit to the new purchaser, that means the current owner is that person.

  3. #3
    Join Date
    Oct 2006
    Posts
    5,387

    Default Re: Rental Home in Foreclosure

    Quote Quoting sontzu411
    View Post
    My question involves landlord-tenant law in the State of: Florida

    I began receiving notices over two years ago that the home I'm renting is in foreclosure, I had asked the management company about them and was repeatedly told that the landlord was NOT in foreclosure. I knew it was B.S., because I went thru foreclosure (which is why I'm renting), but it really didn't affect me as I was still in the property so I continued to pay my rent on time per my lease.

    Anyway, I just found out that the home I'm in is indeed in foreclosure (not a shock) and in fact will be auctioned in about two weeks. The way I understand the new federal law is that I won't have to move out before the end of my lease (which is December 1st), they'll either have to honor the lease or they have to give me at least 90 days...either way, I'm cool there.

    My issue is two fold:
    1. Come September 1st, who do I pay my rent to? My landlord will no longer own the house (auction is on Aug 29). I will continue to pay my rent as long as my lease is honored (meaning maintenance is taken care of--Lawn and Pool mostly).
    2. My LL has a SIZABLE deposit ($7,000). When can I expect that back?

    I had called the management company and I had asked if I could have a partial refund of my deposit (the over and above of the standard monthly rent-which is $2200/mo). She said no problem, but that was when the house was being listed in last-ditch, futile effort to sell before auction. Since they decided to let the house foreclose, now my management company will not return my calls regarding refunding the security deposit, even the partial.

    So, what can I do?

    Thank you!
    That is a very sizeable deposit and I think that your odds of getting it back are not very good. Put your rent into escrow until you find out who the new owners are and who to pay.

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    73,575

    Default Re: Rental Home in Foreclosure

    Quote Quoting sontzu411
    View Post
    My LL has a SIZABLE deposit ($7,000). When can I expect that back?
    You paid this money directly to your landlord? You paid it to the management company, and they forwarded it to your landlord?
    Quote Quoting llworking
    View Post
    That is a very sizeable deposit and I think that your odds of getting it back are not very good. Put your rent into escrow until you find out who the new owners are and who to pay.
    To take advantage of the Protecting Tenants at Foreclosure Act, you must pay all of the rent that is due to your landlord - and you should get receipts or at a minimum pay by a verifiable method. After the completed foreclosure sale, I agree, escrow rent until you know who the new landlord is.

  5. #5
    Join Date
    Aug 2013
    Posts
    2

    Default Re: Rental Home in Foreclosure

    Quote Quoting Mr. Knowitall
    View Post
    You paid this money directly to your landlord? You paid it to the management company, and they forwarded it to your landlord?

    To take advantage of the Protecting Tenants at Foreclosure Act, you must pay all of the rent that is due to your landlord - and you should get receipts or at a minimum pay by a verifiable method. After the completed foreclosure sale, I agree, escrow rent until you know who the new landlord is.
    I've always paid by check and actually, out of the blue, I got a big chunk of my deposit returned yesterday (minus one month's rent-basically).

    When you guys say "escrow" your rent, is there a formal process for that or do you just mean to put it aside .

    I've never "not" paid my rent (double negative). I don't plan on changing that, I just didn't want to send my rent to my current mngmnt co. when I know they don't own the house anymore.

    Thanks for all the advice...

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    73,575

    Default Re: Rental Home in Foreclosure

    If your rent is paid through the date of the sale, I personally wouldn't go through the bother of opening a formal escrow account - but I would try to track down the buyer if I did not promptly hear from them about continuing to pay rent. Also, I'm good about not spending money just because I have it - I've met a lot of people who, if they have a couple of months of rent in the bank, simply can't stop themselves from spending it and finding themselves unable to pay when the reasons for withholding are cleared up. Sometimes having a separate, dedicated account (even if not a formal trust or escrow account) can help people remember that the money isn't to be spent.

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