Property Management After Foreclosure (rental, deposit, legally, lawyer)

[backfist]

Greetings:

We've rented a home for over a year, and have recently learned that the owner is going to lose the property in foreclosure. And while the property management company holds our deposit, we're not sure if they are technically still the property manager on the day of foreclosure.

Any knowledge about this would be much appreciated.

Thanks!

[tony23]

Double check your lease. Does it say that the property management company holds your deposit, or that it is turned over to the owner?

[Donn2390]

In the state where my rental is, neither one holds the money, it's in a separate account held by an independent party, untouchable by either LL or PM. It's state law most places, just so what you are worried about, can't happen. check your state's laws, but I'm sure it's in a safe place... The PM company might have taken it from you, but they turn it over to the proper people for safe keeping...

[tony23]

Your rental must not be in California, then.

In my case, the Property Manager turned the deposit over to the owner.

[ladybug07]

In our situation, we got our deposit back in full. I would contact the property manager and a local lawyer that way you can make sure legally what you are and are not entitled to.

[austin-steve]

This is an oft debated/question topin on the Property Manager yahoo group I belong to, with property managers from across the county.

Unless and until you receive some sort of official/legal notice from someone instructing you that they are the new owner, or the new property manager, and where to send your rent, you carry on as normal regardless of what you might know about a pending foreclosure.

Steve