re:what happens to security deposit if landlord's bank forecloses?

Question

RE: my previous ? My home state is Rhode Island. Also, forgot to ask if it is LEGAL to tell him to use security for January rent ?

Answer 1

The next owner must honor your lease, and that includes the security deposit even if they didn't collect it from your landlord during the foreclosure process. Your security deposit is safe.

The only exception to this is if your current landlord returns your security deposit to you, either in cash or in lieu of rent. In that case, the new owner (bank, investor, private party, whomever) will be within their rights to receive a new security deposit from you if they wish.

Although applying the security deposit to rent is normally contrary to the terms of the lease there is nothing illegal about doing it if you and the landlord both agree. Again, if your landlord agrees to this, do NOT spend that money as the next owner is very likely to demand that you hand that security deposit back to him and since he will inherit your lease you are legally bound to hand it over.

Answer 2

Unfortunately you may loose it. It depends upon whether bankruptcy has been filed and what type. If the property owner has just failed to make payments and you are displaced because he no longer owns the property you have a case against him not only for your deposit but may also be able to collect money if you have suffered damages because of the displacement (had to find a more expensive place, move into a hotel etc.) I would contact an attorney if you can't get satisfaction from the landlord. If your still allowed to stay in the property by the management company that is handling the foreclosure then you security deposit will transfer with the house.

Answer 3

It is a matter between you and the landlord. The lender has nothing to do with you except evict you upon the foreclosure. It becomes their property. At that point you will have to get your deposit back from them. If they are no longer the legal owners then they must refund. You will probably have to sue them in small claims court since if they can't pay the mortgage then what chance do you have of getting your $$?

Answer 4

the subsequent proprietor could honor your hire, and that includes the risk-free practices deposit in spite of in the event that they did not assemble it out of your landlord for the duration of the foreclosure technique. Your risk-free practices deposit is risk-free. the sole exception to that's in the experience that your modern-day landlord returns your risk-free practices deposit to you, the two in money or in lieu of hire. if so, the recent proprietor (economic corporation, investor, private occasion, whomever) would be interior their rights to get carry of a clean risk-free practices deposit from you in the event that they choose.