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  1. #1
    Join Date
    Nov 2007
    Posts
    5

    Default Manager Claims Money is Gone, No Security Deposit Refunds

    my neighbor was informed by property manager that we will have to move in 2 months because our owner was in foreclosure. he was also advised not to pay any more rent. i was informally talked to by manager's mother who work in the office. well, should we refrain from paying rent as per manager's advice, or wait till we get something in writing from the foreclosing bank? next, steve does not choose to move to a property offered by manager and wants his deposit back but the manager told him the money is gone and has disappeared. so, i adviced him he had a right to his deposit back regardless. this he needs for a down payment, security deposit on another place here now. we are low income, and steve just had another baby to add to his family composition of 6. what are our rights as tenants when an owner forecloses? should we get some form of moving expense? in this case, steve needs to come up with over $1000 down payment while he is told he will not get his deposit back either since money is lost. well, if deposits transfer from owner to owner, then this new owner who didnt even last a year or the manager who collected the money from the start used it for their own pleasure...to my estimation. who is responsible for it now in foreclosure? the manager remains as part of a development group here.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Manager Claims Money is Gone, No Security Deposit Refunds

    This is in what state?

  3. #3
    Join Date
    Nov 2007
    Posts
    5

    Default Re: Manager Claims Money is Gone, No Security Deposit Refunds

    this is southern california! when i spoke to the manager he took for granted we moved into one of the apartments he manages. (no refunds, no questions about rent, his gain to look good as he filled other woner's properties) he gave me a different scenario actually telling me to continue paying rent. my question is, when bank comes with the 2 week notice i might get shorted my rent. also, strangely, we had been making out the checks to the manager not owner this time around. we are under section 8, both of us here. the last time this happened my neighbors quit paying and got away with it 2-3 months. i am sure this is a different situation but what are we entitled to as tenants? the owner defaulted, but we owe him rent? plus, do we really pay him or the manager now here? i hate to be bullied. what irks me is he went to my sec 8 worker to ok the move before even talking to me about the foreclosure.

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Manager Claims Money is Gone, No Security Deposit Refunds

    Read this. This is not a typical sale - it is a foreclosure sale - so don't expect that the provision holding the new owner responsible will apply. See also:
    Quote Quoting California Civil Code *1950.7(B)
    (b) The payment or deposit of money shall be held by the landlord for the tenant who is party to the agreement. The claim of a tenant to the payment or deposit shall be prior to the claim of any creditor of the landlord, except a trustee in bankruptcy.
    Even if the landlord declares bankruptcy you can make a claim with the bankruptcy court, and if there's anything to get you'll have priority as described in that statute. If there is no bankruptcy, you and other affected tenants can sue the landlord in small claims court.

    I don't know enough about your situation to comment on payment of rent, but it is typical in foreclosure cases that you would hold the money in a bank account pending the resolution of the foreclosure.

  5. #5
    Join Date
    Nov 2007
    Posts
    5

    Default Re: Manager Claims Money is Gone, No Security Deposit Refunds

    The claim of a tenant to the payment or deposit shall be prior to the claim of any creditor of the landlord...does this not mean, we should be getting our deposits back now when we need the money to move even though simply it means before the creditor takes over all debts must be taken care of? as i said, steve was told there is no such thing as deposit fund, no money. but as you stated and is logic too, it is a separate fund and issue in rental management. so basically then, via manager, the owner refuses to refund the tenants. but nothing is in writing but verbal by our manager who is rather flaky and even our housing association knows this. so, i would not be surprised if he worked together with the old owner in his self interest too to fill apartments under his care to shine before the HA and owners. (overstepping the line calling section 8 workers about moving tenants even before notifyting tenants of changes, manipulation to avoid refund claims etc) he has been known for this. he does not always walk within guidelines. what jurisdiction does a manager have in such situation anyways? what are we entitled to in this? i pay rent today for the month, but will this be honored? if the bank steps in tomorrow and gives me a 2 week notice, dont i have a right here as paid tenant although at this point i wouldnt have a relationship with the bank. does the old owner have to pay me the difference back? and what can i expect from the bank? moving expense? anything else?

  6. #6
    Join Date
    Nov 2007
    Posts
    5

    Default Re: Manager Claims Money is Gone, No Security Deposit Refunds

    to add and make a point here: i pay rent (with this owner we made out the checks in the manager's name actually) now, and the bank takes over tomorrow. i move within the 2 weeks as per bank...but i move with the manager into one of "his" apartments. no money exchange necessary. tell me now who holds the funds here? (obviously the manager who can maneuver money here very freely) for me it is a smooth move, but for steve it is a legal squabble wanting his rent money left for the rest of the month and deposit back. he is a victim here having a large family and no savings to spare for a move. how does the law apply to such situation? these people moved in faithfully paying their part, now ending up treated like dirt? they need the money to move now. not next year! there has to be some fair housing issue here.

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