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We rented a home. Recently we got wind the house was in foreclosure. Then in talking to the landlord he told us that he didn't have our $10,000 security deposit that he had in fact spent it. My fear is that if he is foreclosed on I can sue him for the deposit but if he is bankrupted I have no chance of ever seeing that money. I live in Florida. Do I have the right to hold back rent and put it into an escrow account until he shows me evidence of my money in an account?
I don't know, foreclosure won't affect you, but bankruptcy will, I sure as heck wouldn't pay any rent until deposit is covered. Let him take you to court, what do you have to loose? He won't.
Send a letter to your landlord by certified mail, return receipt requested, with a second copy by regular mail. In the letter inform your landlord that, due to his admitted violation of Florida's Title VI Section 83.49, you are instructing him to apply your security deposit to the monthly rent and that you are not responsible for payment of rent until the total amount of your security deposit, plus interest, has been applied.
Then cross your fingers and hope that the foreclosure isn't complete until your deposit has been used up.
What if the lease continues past that time can he evict us for not paying rent?
Once the security deposit has been used up you are still responsible for paying rent until the lease ends or until you are notified that the foreclosure is complete.Quote:
Originally Posted by Pandooora
Hello P:
I know this isn't what you asked, but putting up a $10,000 security deposit is excessive, unless of course, it's a mansion. Requiring such a substantial deposit should have been your first clue that the landlord was in trouble.
Lisa is absolutely right. Let's hope he's not foreclosed upon before your deposit is used up.
excon
It is a mansion. We had a rented with option to buy. He had told my son and his wife who rented the home with me that he was going to owner finance the home after a year. With the three of us supporting the house we are able to make the rent. But $10,000 was my whole savings. It was put into the lease that the $10,000 was a refundable deposit.
When he told me he was intending to short sale the house because he is losing it he told me who ever buys the house has to give me my deposit back because he spent it along time ago. He then added times have been just to tough to not use any money in my hands.
If he does sell the house, short sale or regular sale, then you will be entitled to get the security deposit back from the new owner when your lease term ends. However I would not take a chance. I would still send that letter right now and have him start to apply that security deposit to your rent as it comes due.
Yep I would send the letter and find a way to tell the 'new owners' what they are doing.
A landlord is suppose to put a security deposit in a savings acct to collect interest for you
NOT spend it on their own whims
I read that but in the Florida statue it also says not depositing the money is not a defense for not paying rent. My son and his wife are police officers and we can't take the chance of them doing something illegal. I didn't know if depositing it into an escrow account would be the same as not paying rent.
Yes if you don't pay the rent you will need to put the money into an escrow acct until everything is settled.
Yes but Florida Statute Section 83.60(2) states that the rent does not have to be deposited into court until the landlord has filed a complaint for eviction for non-payment of rent.Quote:
Originally Posted by Pandooora
If you feel more comfortable setting up a separate account and paying the rent into that account then do it. But send that letter to the landlord first. If the landlord files a lawsuit for eviction then you can take the rent money out of that separate account and deposit it with the court.
Hello again, P:
Your landlord precipitated this entire event by doing TWO things that put your money and your homestead at risk. 1) He didn't pay his mortgage, and 2) he spent your deposit. Once he did those things, ALL legal bets are off.
After the landlord broke your agreement, if you insist on keeping up your end, you'll LOSE your $10,000. There's no question in my mind about that. Plus, from a legal perspective, HE breached your contract. Therefore you don't HAVE a contract.
By putting the money in an escrow account you are showing your good faith. You're doing this because you KNOW your actions will be reviewed by a judge down the road. If he DOESN'T sue you for not paying the rent, then no harm - no foul. He'll get his rent, and you'll get your deposit. If the house DOESN'T foreclose, then no harm - no foul again. He'll get his rent, and you'll get your deposit.
If he DOES sue you, you'll be able show how HE broke the lease and how YOU still acted in good faith. I believe you'll win.
In terms of your sons who are cops. A civil issue such as this will have NO effect on their careers.
excon
Keep your money and send the letter. The only reason he would evict would be to set up some one else for this sucker punch. Therefore, you won't need a defense. Civil matter. Someone define the difference between illegal and unlawful.
First put a lien on it, that way even if/when it does sell you will still get yours. Then do as the poster above said with the certified letter about withholding rent and add that the lien will be removed when the amount withheld is equal to the amount of the security deposit. That way even if it forcloses you will still get a cut
Thank you all for your responses!!
Quote:
Originally Posted by LisaB4657
I didn't know where to post this so I'm putting it here. Trust it can be moved if it's in the wrong place.
Lisa - up to now you've been the expert without a title. I am DELIGHTED to see that you've accepted a title!
Oh, I never got my expert t-shirt and the toaster that were promised me so if you get yours, call me and I'll submit a formal complaint.
In the meantime - delighted to see "expert" after your name. Now I don't have to walk around behind you saying, "Lisa is the expert."
LOL!Quote:
Originally Posted by JudyKayTee
I got a tshirt, a toaster and they send someone over once a week to clean my house.
I wish!
Quote:
Originally Posted by IndustryMommy
Problem with the lien idea - the OP would need a Judgment to get a lien and can't get a Judgment in anticipation of not getting the money back. This problem is sort of a two headed sword.
Or am I missing something here?
Quote:
Originally Posted by LisaB4657
With my luck I'll be the one assigned to clean your house. I KNEW I should have taken a closer look at my contract.
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