Check out some similar questions!

floridavictim · Jan 28, 2009, 03:31 PM

Here is another victim of foreclosed apt in Florida.
My Apts were owned by a famous south Florida company which declared bankruptcy.
I lived in the apt for 18 months on 7 months lease and then during the foreclosure process for 6 months, month to month until it was bought by new owner.new owner bought the apt in march 2008.I vacated the apt giving 30 day advance notice on Apr 31 2008 to the new owner.. I waited for June 10th and send a mail asking my security deposit of 350$ to the new owner.new owner said that the previous owner has ran away with all the security deposits which was like between 15,000$ to 30,000$(do not know exact figure as it had 300 units).
The previous owner declared bankruptcy in May 2008. I had sent a letter asking for my deposit to the previous owner but no reply.at that time I thought I do not have any option.now that I came to your site I want to take some expert opinion on this. Can I sue the new owner for my security deposit of 350$.since the previous owner already declared bankruptcy there is no point in suing that owner. Thanks a lot in advance.

twinkiedooter · Jan 29, 2009, 07:06 AM

Technically any deposit money is to be transferred to the new owner at the closing of the property. It is irrelevant that the previous owner supposedly "ran off" with all the deposit money. Sue the present owner of the complex. Have all your paperwork in order showing that you paid this in the first place. Small Claims Court. Worth the hassel if you win.

floridavictim · Jan 30, 2009, 10:17 AM

Thank you for your advice.the apartments is managed by a property management company.do I sue the owner or property management company.
TIA

Fr_Chuck · Jan 30, 2009, 10:32 AM

Well I may disagree with twinkle on this one IF>>>

The new owner bought the apartments from the bankruptcy court. ** and this was not a foreclosure if it went to bankruptcy.

So if it went to bankruptcy, then the security deposits did not travel with the property, and you are just out, or need to file a claim against them when they filed bankrutpcy.
So if the new owner filed for bankruptcy and included the property, you are just out the money

Now if the property was foreclosed and sold at a foreclosure sale, then also the deposit money does not move with the property.

In both of those cases even the leases do not carry over.

Now, if the new owner bought the properties before they were foreclosed or before they wnet bankrupt then yes they will owe you your deposit.

Just not sure of the time line

floridavictim · Jan 30, 2009, 02:46 PM

First the apts was foreclosed by bank which is the lender.then new owner bought this from bank in foreclosure sale.after a month previous owner filed for bankruptcy citing no money to give to creditors.
That was how it happened.thanks in advance.