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Can You Lose Your Deposit on a Residential Lease on a Foreclosed Property?

The current real estate climate, with owners becoming tenants and banks becoming landlords, can be rife with complicated situations and shifting loyalties. It can be extremely difficult to find out what your rights are. If you were leasing a property that was subsequently foreclosed, your obligations as a tenant should have shifted to the new owner. That is, you would pay rent and fees per your original lease agreement to them. Additionally, any security deposits you paid to the original owner should have shifted to the new owner as well. As the new holders of the security deposit, it is their responsibility to hang onto until the landlord/tenant relationship has ended and return the deposit to you, minus any documented expenses for repair, unpaid rent, etc. If your original landlord did not transfer the security deposit to the new owners during foreclosure, your only recourse is small claims court, unfortunately. Make sure to stay in touch with your landlord and the prospective new owners during the foreclosure process to make sure that the transfer is going smoothly. As you can see, leasing a property that has been foreclosed can be a very complicated situation and it is possible for tenants to be taken advantage of. In order to protect your rights and ensure you get the best treatment possible, consult with an experienced attorney. Only a knowledgeable real estate lawyer can help you make sense of the complex laws, regulations, and forms that govern the real estate industry. Contact one today to learn about your rights. Stephen K. Hachey, a Florida real estate attorney can help your wade through this difficult process and determine a positive solution. Contact him at 866-200-4646. The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice. This post was written by Stephen Hachey. Follow Stephen on Google, Facebook, Twitter & Linkedin.