Should I Get All My Deposits Back?? (foreclosure, rental)

[Pinz2007]

I'm renting A home and pay my rent on time every month. I came home last week to a letter taped to my front door stating the home I am renting is going to auction on Nov 12th. I called the Managemant company and asked them what was going on and they had no idea, I was called back and told the home was being forclosed on. I asked them since they were breaking the lease if I would get all my deposits back and they said only the refundable deposits. Shouldn't I get all my deposits back even the non-refundable ones, Seeing as they are the ones breaking the contract???

[SouthernBelleInUtah]

No. The law exists to "make you whole." Living rent-free is giving you a benefit beyond that to which you are entitled.

[Bummer]

Originally Posted by Pinz2007

I'm renting A home and pay my rent on time every month. I came home last week to a letter taped to my front door stating the home I am renting is going to auction on Nov 12th. I called the Managemant company and asked them what was going on and they had no idea, I was called back and told the home was being forclosed on. I asked them since they were breaking the lease if I would get all my deposits back and they said only the refundable deposits. Shouldn't I get all my deposits back even the non-refundable ones, Seeing as they are the ones breaking the contract???

Why would you expect that, Pinz?

Also, just because the property is going into foreclosure, why do you feel you should be rewarded? How do you know the new owner, if the auction is successful, will not simply continue to honor the existing contract rather than terminate the lease or month to month?

Good Luck and, if you are happy there, have you considered bidding on the property? This may be a great opportunity for you.

[Greatday]

Originally Posted by Pinz2007

I'm renting A home and pay my rent on time every month. I came home last week to a letter taped to my front door stating the home I am renting is going to auction on Nov 12th. I called the Managemant company and asked them what was going on and they had no idea, I was called back and told the home was being forclosed on. I asked them since they were breaking the lease if I would get all my deposits back and they said only the refundable deposits. Shouldn't I get all my deposits back even the non-refundable ones, Seeing as they are the ones breaking the contract???

Assuming you have a lease, even though the home is being foreclosed upon, the lender who is foreclosing must honor the balance of the lease term. They cannot force you to move.

Now, what they may do is try to "buy you out" - we often refer to this as the "cash for keys" program. Let me explain:

Say you have another 9 months on your lease. The lender may come to you with an offer to give you a certain amount of money if you will leave now. The amount varies but usually it is enough to cover your moving, utility hook ups etc.

As for your deposits: If the property is foreclosed upon, the lender IS NOT responsible for your deposits. Those deposits went to either the owner of your rental home, or a property management company. The ONLY deposits you are entitled to ARE the refundable deposits. You cannot legally demand return of the Non refundable ones.

Good luck to you -

[Greatday]

Originally Posted by SouthernBelleInUtah

No. The law exists to "make you whole." Living rent-free is giving you a benefit beyond that to which you are entitled.

It is doubtful he is living "rent free".

[SouthernBelleInUtah]

Originally Posted by Greatday

It is doubtful he is living "rent free".

No, but if he got all his deposits back it could amount to a month's rent, which would effctively give him a free month.

[Greatday]

Originally Posted by SouthernBelleInUtah

No, but if he got all his deposits back it could amount to a month's rent, which would effctively give him a free month.

That's only IF the deposits were allocated towards rent. Most in Arizona are not.

They are allocated towards cleaning.

[military spouse]

I really didn't get the impression that the OP was trying to benefit from the situation. The OP paid deposits and rent and expects to live there for atleast the period of the lease, but now there is some question about how all this will transpire. I would be asking the same questions if I were to OP. I would imagine it is pretty stressful to not entirely know what/when changes will occur. Tough spot!!!!!

[cmist]

Isnt that really short notice for the auction? This happened to my brother where he was renting but the auction was months out. He was able to make the best of it by no longer paying the rent to the landlord since they weren't making the mortgage anyhow. So he got a few months free.

I'm not recommending that by any means, I just thought the notice sounded extremely short? But not sure.

[aiwei]

Sounds to me the landlord knew about the auction date but did not share that info w/ OP, hence the short 2-week notice. The landlord probably also pocketed the rents OP paid in recent months.