Do we have any recourse when the house we are renting is foreclosed on?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Do we have any recourse when the house we are renting is foreclosed on?
We have a 1 year lease and paid deposit. The management company did not pay the mortgage and now the house is in foreclosure. The management company took rent for a month when they no longer had legal possession. They also have our deposit money. Is there anything that we can do to recoup money?
Asked on November 10, 2010 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Legally, you are entitled to your security deposit back. Also, they should not have been paid rent when they were no longer the owner. You could sue for the return of these monies, but that's effectively your only recourse. Unfortunately, sometimes rental units or homes are foreclosed on, and when they are, unless the tenant can show that fraud was involved (e.g. the landlord knew he was in default when the lease was signed, but knowingly withheld that vital information from the prospective tenant), there is usually no other right of recovery. Under some new (since '09) laws, you probably will have at least 90 days, and possibly longer, before having to move out, which gives you some time to find a new situation, but that's about the only bright spot. Below is a link to a press release with some information on the subject: http://www.whitehouse.gov/the_press_office/Reforms-for-American-Homeowners-and-Consumers-President-Obama-Signs-the-Helping-Families-Save-their-Homes-Act-and-the-Fraud-Enforcement-and-Recovery-Act/
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.