Renting without a lease agreement and landlord is heading for foreclosure. How can I get my deposit back?
June 22nd, 2011 | 
Author: My lease agreement ran out a year ago. After the twelfth month, I continued to pay my rent as per the guidance of the real estate agent that found this house for me. As I have been hoping to purchase a home in the near future, I didn’t mind having a month-to-month agreement, but I am still probably 9 months out. I have just began receiving letters stating “It’s not too late to save your home” as well as attorney letters from the home owners association. I provided the landlord with first month plus one month security deposit when I moved in back in July of 2007. Is there anything I can do in an attempt to get my security deposit back? Do I have any recourse? Does anyone have a website that can assist me with this situation? Any advice is welcome. Thank you in advance for your help. Sarasota, Florida Renter
Posted in Landlord Tenant Law
Your security deposit is die you after you move out regardless of this. The landlord is not off the hook, nothing has changed. The courts will assist you if they do not pay, the foreclosure does not have any effect on your deposit, other then the fact that you are entitled to it all, minus repairs made while he owned the place.
Im sorry but I am in the same exact position as you. We just started receiving the letters about foreclosure for our landlord! We also are month to month. I hope you get some answers as I will be checking back for any help! You are not alone!!!
There is nothing you can do until after you move out and the initial 30 days has passed and they have not returned it. You then have to send a demand letter. Only after those 2 things have been done can you take them to court for it.
If the owner goes into foreclosure that means he is broke and unable to pay the mortgage. Given that fact do you think he is going to repay you? Probably not.
A number of people in your situation simply stop paying rent. The owner will not evict them because he is losing the property anyway and does not want to go through the time and money to get rid of you for the benefit of the lender (new owner). The new owner (after the foreclosure) will ask you to leave or throw you out. Either way you will have several months of free rent to compensate you for your lost deposit. You may not want to be a deadbeat tenant. That is between you and your conscience.
If you choose to not pay rent, make very, very sure beforehand that the property is going into foreclosure. Good luck!!
Unfortunately you probably won’t be getting that deposit back, but for future reference you can find out if the home you are renting is in foreclosure for FREE at http://www.rentalforeclosure.com and staff may be able to answer some of your questions just look for the comment section.