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The house I am living in was auctioned on Friday April 6th. The landlord told me in late March that despite it going to auction I still had to pay her rent. I obliged because I didn't want to open any loopholes for a new owner on April 6/7 to oust me ("they didn't pay rent in April! OMG!"). I then told her I expected my security deposit back, and she actually had the nerve to respond with "Are you putting in your notice? if so I need it in writing". Keep in mind, this was on April 6th after the auction, when she no longer owned the house.
Per Missouri state law, she has 30 days to return my security deposit. Since she is not in bankruptcy but is instead in foreclosure (the "company" owns over 100 houses), can I sue for my security deposit back?
O.K., I see from your other post that you are still living there. In that case, you can;t sue for the return of your security deposit because you are not entitled to the security deposit AT THIS TIME. You are entitled to the full or partial return of the security deposit when you terminate your tenancy within the time period your state law gives the landlord to return it. However, since this is a forclosure, the new landlord may not have received any deposits from the old landlord and that complicates things. It appears that so long as the new landlords has been diligent in trying to get the deposits from the old landlords, if they were unsucessful, you would need to sue the old landlords for the money. If the old Landlord gave them the deposits or turned over the account to them, the new Landlord would be the one who has to abide by the law. Under Mo law, even ina forclusre, bankrupcy or abandonment, your security deposit is not returnable until vacating the premise. But, you also appear to have protection that youre security deposit survives any default or bankrupcy by the holder, so even if they declare bankrupcy, your security deposit is still owed to you by them.
Last edited by PacificFlights; 04-09-2012 at 05:40 PM..
Ugh - that's annoying. I would gladly get the money and give it to my landlord so that I can get it back when I leave.
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