We rent our home through a rental agency. The owner of our house foreclosed, and we received notices of a different company being the current trustee. The home went into foreclosure a month ago. Does the rental company have the right to still withhold your deposit, even though the owner they were hired by does not own the house any longer? Do they still have the right to manage the "property" for the previous owner? We are moving out within the month and just wanted to get our deposit money back, since it is over 2 months of rent... the rental company has been given 30days notice, and we just thought it was strange that the company has said it would give us instructions on moving out properly so we would qualify for our entire deposit, YET they have still given us no instructions... and why would they try to manage a home that is no longer owned by their client?? Help!

Hello y:

If it were me, I'd be doing the instructing - not some agency. The LAW is at play here - not what THEIR idea is of the law.

Clean the home broom clean. Arrange a walk through with the agency for the last day. Take pictures.

The owner probably has (or doesn't have) your deposit. Since he's in foreclosure, I doubt he has it. You're going to have to sue him. I'd sue the rental agency too while you're at it. Maybe they have it. I don't know.

Depending on what state you live in, the landlord has a certain amount of time to return you deposit. At the top of the real estate page on a "sticky note", we have all the state landlord/tenant laws. I'd go look up yours.

excon

Ok the term "going into foreclosure" was it actually sold, did the bank actually take possession, the foreclosure process can take 6 to 9 months after the owner stops paying and sometimes a lot more before the bank actually takes over the property.

So that is my issue, too many people hear that the house is in foreclosure and think the bank already owns it

Except in California your lease is valid until the day the property is actually taken over by the bank. And the rental company can and does expect payment and will hold you to the terms of a lease till that happens.

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Originally Posted by Fr_Chuck

Ok the term "going into foreclosure" was it actualy sold, did the bank actually take possession, the foreclosure process can take 6 to 9 months after the owner stops paying and sometimes alot more before the bank actually takes over the property.

So that is my issue, too many people hear that the house is in foreclosure and think the bank aready owns it

Except in California your lease is valid untill the day the property is actually taken over by the bank. And the rental company can and does expect payment and will hold you to the terms of a lease till that happens.

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Another detail... we already received notice that he is no longer the owner of the home, a bank ownes it and there is an auction date set in March for the house.