What to do if my landlord refuses to return my security deposit because the property was foreclosed a year ago and current landlord does not have the deposit?

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What to do if my landlord refuses to return my security deposit because the property was foreclosed a year ago and current landlord does not have the deposit?

My landlord refuse to return the security deposit because the property was foreclosed a year ago and the current landlord is the new owner. Is it legal for the landlord not to return my security deposit?

Asked on January 5, 2012 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the rental that you are living in was foreclosed upon a year ago and your former landlord has not tendered your security deposit to you or the new owner yet, you need to do the following:

1. write the former landlord a letter giving him or her a certain period of time to send either you or the new landlord the full amount of the security deposit for the rental you are occupying that was foreclosed upon. Keep a copy of the letter for future need and reference.

2. if the demanded time period passes without you getting the response you want, your recourse would be a small claims action for the security deposit's return to you.

The former landlord has no right to the security deposit since he no longer owns the rental having lost it in foreclosure.


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