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So my friends and I rent a house for $3200 a month and are on a month-to-month contract. Our landlord has not been making the mortgage payments and we got a notice of foreclosure last month. The house is currently on the market for short sale. We do want to live in the house for as long as we can. The landlord also has a $3200 security deposit from us. I have also heard that if the house gets foreclosed on that we would not be entitled to receiving our deposit back. I am wondering if it is legal for him to collect rent from us and not pay the mortgage?
 

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Keep next months rent as payment for ur security deposit, them make him evict you, when you go to court explain it to the judge....if you dont ur never gunna see that money, if he still has it he would be making the house payment....:|err
 

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tough situation, but increasingly common, also try contacting the lawyer for the lender, his name is on the notice you got.
 

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Keep next months rent as payment for ur security deposit, them make him evict you, when you go to court explain it to the judge....if you dont ur never gunna see that money, if he still has it he would be making the house payment....:|err
Hell no! You will never get another place with eviction on your record.

Just because the landlord does not pay the mortgage does not release you from your rental agreement. The judge will not rule in your favor if it even goes that far. Just give notice and move out without paying your last months rent and tell the landlord to keep the deposit in lieu of. I bet he doesn't even have the funds to return your deposit.
 
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Hell no! You will never get another place with eviction on your record.

Just because the landlord does not pay the mortgage does not release you from your rental agreement. The judge will not rule in your favor if it even goes that far. Just give notice and move out without paying your last months rent and tell the landlord to keep the deposit in lieu of. I bet he doesn't even have the funds to return your deposit.
This is a much better plan than forcing or allowing a legal eviction.
 

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Hell no! You will never get another place with eviction on your record.

Just because the landlord does not pay the mortgage does not release you from your rental agreement. The judge will not rule in your favor if it even goes that far. Just give notice and move out without paying your last months rent and tell the landlord to keep the deposit in lieu of. I bet he doesn't even have the funds to return your deposit.
Your saying hell no in which I agree could bite him. I'm beting the contract says he can't withhold the month in lieu of the rent though.
 

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Ditto that. Have heard stories of the banks giving the renters some cash if they leave the place in good condition upon leaving.


Hell no! You will never get another place with eviction on your record.

Just because the landlord does not pay the mortgage does not release you from your rental agreement. The judge will not rule in your favor if it even goes that far. Just give notice and move out without paying your last months rent and tell the landlord to keep the deposit in lieu of. I bet he doesn't even have the funds to return your deposit.
 

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Your saying hell no in which I agree could bite him. I'm beting the contract says he can't withhold the month in lieu of the rent though.
This is true but I doubt the landlord will come after him since he has no money. Or he could just give notice pay rent and hope to get his deposit back when he moves out.

Have you tried talking to your landord or the mortgage co?
 

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This was all I could find for you...

If you want real and valuble answers: I would contact the Ca. dept of R.E for any futher questions...


L
ANDLORD AND TENANT 161


Security deposit.


A security deposit secures a tenant’s performance of lease obligations.

It constitutes assurance to the landlord that, in the very least and to the extent of the
security deposit, the tenant’s monetary obligations will be satisfied.
Although a security deposit is generally cash deposited with the landlord, other forms
are often used in commercial transactions: letters of credit and certificates of deposit. In
addition, a security deposit may generally be categorized pursuant to the terms of the
lease as:
1. prepaid rent (generally for rent payable at the end of the term);
2. a forfeitable security deposit (forfeited in its entirety upon a tenant default specified
in the lease);
3. a non-forfeitable security deposit (refunded at the end of the term, less debits
attributable to specified tenant defaults); or
4. a bonus for lease execution (non-refundable).
In any event, a security deposit is held by the landlord for the benefit of the depositing
tenant, and a tenant’s claim to the security deposit has priority over claims of all the
landlord’s creditors except a trustee in bankruptcy.
In a residential lease, notwithstanding the specific terminology (e.g., “advance
payment,” “fee,” or “charge”) or the purpose designated (e.g., a “cleaning” or “security”
deposit) used to describe a tenant’s monetary deposit to secure performance under the
lease, the money deposited is a refundable security deposit. Any purported waiver by a
tenant of the right to a refund of the security deposit (less allowable debits attributable to
the tenant’s defaults as specified in the lease) is null and void.
A landlord may require that the tenant pay, regardless of the purpose therefor and in
addition to the first month’s rent, a maximum of:
• two months’ rent in the case of an unfurnished residential property;
• three months’ rent in the case of a furnished residential property.
If, however, the term of the lease is six months or longer, the landlord may collect an
advance payment of up to six months’ rent.
Within three weeks after a tenant vacates and surrenders the premises, the residential
landlord must:
1. give the tenant (by personal service or first-class mail, postage pre-paid) an
itemized written statement setting forth the amount of the original security deposit
and the basis for and amount of any deduction therefrom; and
2. refund the balance of the security deposit.
If the landlord sells the residential property or transfers its interest in the premises, the
landlord may transfer the security deposit (less any lawful deductions) to the new
landlord. In the event of any such transfer, the landlord must (by personal delivery or
162 C


HAPTER NINE

first-class mail, postage prepaid) give the tenant written notice specifying the amount of
the transfer, itemizing the deductions, and identifying the successor landlord by name,
address, and telephone number. Alternatively, the landlord may return the security
deposit to the tenant, less any lawful deductions, with a statement itemizing the
deductions therefrom. The successor residential landlord has the same rights and
obligations with respect to a security deposit as the original landlord.
The existence of a security deposit creates a debtor/creditor relationship between the
landlord and tenant. Consequently, the landlord has a personal obligation to return the
security deposit (less any lawful deductions). If the original landlord fails to satisfy
either statutory alternative set forth immediately above, both the original landlord and
the successor landlord remain personally liable to the tenant for the amount of the
deposit (less any lawful deductions).
If the landlord retains any portion of the deposit in bad faith, the landlord is liable for
actual damages, a statutory penalty not exceeding $600, and interest thereon at the rate
of 2 percent per month from the due date until paid. In addition, the landlord may be
liable for punitive damages.
The law governing commercial property security deposits is less onerous to landlords in
each of the following material respects (and is otherwise similar to that governing
residential property security deposits):
1. There is no maximum on the amount of the security deposit.
2. When rent is the only deduction from the security deposit, the remaining balance, if
any, must be returned within two weeks of the tenant vacating and surrendering the
premises. However, if the landlord makes bona fide deductions (e.g., for cleaning or
damage), the landlord has up to 30 days (unless otherwise agreed to by the parties)
to refund the balance and no written itemization is required.
3. Following the landlord’s transfer of the property, the successor landlord will not be
liable for return of any security deposit (or prepaid rent) paid to the prior landlord
unless those funds are actually transferred to the successor landlord. Absent such
transfer, the tenant must recover from the prior landlord.
4. If the landlord fails to return the security deposit in a timely manner, the statutory

penalty is $200.



 

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I have heard of banks wanting you to stay in the house so it does not get damaged and will pay you for the keys when they are ready to take possession of the house, if you take care of the house. The problem might be that the landlord or owner still has control being that he is trying to short sell it to avoid the foreclosure. Contacting the attorney is a good idea because you may not get the truth out of your landlord.
 

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I was in this exact position back in 95. What we did was talk to the land lord and ask if that would be acceptable if we used the deposit as the last month rent and she said it would. So it almost worked out until the marshall came a knocking on our door 20 days later giving us 24 hours to vacate the premisis, taking pictures of us our cars and licence plates.
Fun times!
 

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I was in this exact position back in 95. What we did was talk to the land lord and ask if that would be acceptable if we used the deposit as the last month rent and she said it would. So it almost worked out until the marshall came a knocking on our door 20 days later giving us 24 hours to vacate the premisis, taking pictures of us our cars and licence plates.
Fun times!
Did they evict you?

it's usually 5 or 7 days after they put the notice on the door.
 

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Most OC property management company's won't even touch you after you've had a unlawful detainer filed on you, they don't care if you won or lost.
 

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So my friends and I rent a house for $3200 a month and are on a month-to-month contract. Our landlord has not been making the mortgage payments and we got a notice of foreclosure last month. The house is currently on the market for short sale. We do want to live in the house for as long as we can. The landlord also has a $3200 security deposit from us. I have also heard that if the house gets foreclosed on that we would not be entitled to receiving our deposit back. I am wondering if it is legal for him to collect rent from us and not pay the mortgage?
There is someone on the boards here that is an expert on this shit, maybe someone will chime in with his name.

don't quote me but I think the bank will be on the hook for your deposit if the landlord skips.
 

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Most OC property management company's won't even touch you after you've had a unlawful detainer filed on you, they don't care if you won or lost.
That's true in Riverside too. Only diference is they get you for a $50-$100 buck app. fee before they say your out.
 

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This is not the answer landlords want to here but heres your fix. Unless the landlord is giving some of your rent to the mort. co. he is in effect breaking the lease. Reality is he is pocketing your rent and stringing the foreclosure out as long as you dont know, until the 3 day notice shows up on your door. Hopefully you have proof of a rental contract, receipts/cashed rent checks or any proof you are paying. And finally the only solution you have is take the landlord to small claims ($7500 max) and once you prove you have been paying while the house is in foreclosure and you lost your deposit the judge will laugh your silly landlord right out. Now the big ? is can you collect??? You wont find much info on the internet but there is case history. But if interested in standard rental agreements go the the HUD website. Good luck
 

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I'll come back on in a few hours and tell ya everything you need to know - both good and bad. Just got back in and need to get settled first.
 
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