In California, Is the original landlord responsible for deposit refund in a rental foreclosure situation? But here's the twist, after sale of trustee's deed(Feb 20, 2008), we stayed in the rental rent free, unsure what to do and unsure of our tenant rights. The bank proceeded to start the eviction. The banks property mgt company began communicating with us, and offered a "Cash for Keys" deal. We accepted at the last moment and part of the agreement was to clean up the property which was a mess from previous tenants. We vacated a few days after the agreed date(April 24, 2008), but the proprty mgt accepted and paid us the money. Shortly after vacating the rental I contacted the old landlord about the deposit, She said she legally had 3 weeks after date of vacating. Now she says she received a bill from bank due to extra days past agreed date of vacate, also she saying that still legally owned the rental until May. Accepting any comments or thoughts on this situation. Small claims I assume, Just looking for some other facts/technacilities to base my claim on.

Another note: We moved into this rental in September 2007, Do I possibly have grounds to sue for FRAUD?

Thanks in advance,
Yohon82166

Hello yo:

Nahhhh, it wasn't fraud unless they cheated you, and you didn't say they did. Just sue for the deposit... But, if they couldn't pay their mortgage, they ain't got no money. Winning a judgment is one thing.. Collecting on it is another.

excon

What would be the grounds for fraud? How can the landlord say she owned the property until May when the deed was executed in Feb? From what I know, she either had to refund you the deposit when the property changed hands or transfer it to the new owner.

Let me get this straight:

You were renting a place. It foreclosed. You lived there two months rent free. You got paid to move out, and got that money even though you breached the agreement by not being out by the day you said you would. And you are asking for your deposit back? Sure, you can sue. Your former landlord has no money, so even if you get the judgement, you will probably never collect on it. Think of it as having paid for those last two months rent, and just move on with your life.

And if I were the former landlord, I'd tell the bank to take a hike on paying because you stayed past the agreed upon date. That wasn't an arrangement that they made with you, so if the bank wants that money, it should be going after you for it.

Sure you can sue for the security deposit. The landlord can countersue for rent not paid to him/her while she was still in legal possession of the property.