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Law Pro
Law Pro, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 24870
Experience:  20 years experience in consumer advocacy, debt collection violations, contracts, construction
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Hi, I recently was occpying a house under a seller finance

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Hi, I recently was occpying a house under a seller finance program. I paid the seller a small deposit and started making monthly payment . Well the seller foreclosed on the property and Fannie Mae became the new owners of the property under the lease purchase program I was in. They decide to honor the present agreement under a lease only. So when my contracted ended and I moved out. I asked Fannie Mae representative about," who would be responsible for my deposit," and they informed me that was between me and the previous landlord. Is this correct and do I have any legal grounds to suit FM for my deposit because they took over my lease as the new landlord.
Hi! My name is XXXXX XXXXX I'll be the attorney assisting you.

Thank you for asking for me.

The reality is - Fannie Mae owes you the security deposit.

The new owner of the property after foreclosure, or however they over ownership, makes them responsible for the tenant's security deposit.

In the event that a Tennessee landlord sells the investment property, or the property otherwise changes hands, the landlord is required to transfer all security deposits to the new owner. The landlord must then notify the tenants in writing that the new owner is now in possession of their deposits.

Foreclosed or bankrupty is not a problem at all. It makes no difference if the property has been forclosed or even if your landlord is bankrupt.

Fannie Mae failed to follow the law in multiple ways here in your situation.

Landlord tenant law in the state of Tennesseeis very clear There are specific steps and requirments that a landlord must meet regarding security deposits.If the landlord does not follow the exact letter of the law then their right to withhold ANY of your deposit money is forfeited completely. In this case Tenant laws in the State of Tennessee force the landlord to return 100% of your security desposit.


I would file suit against Fannie Mae in your local small claims court asap.
Customer: replied 3 years ago.


To add I learned yesterday through public records that the management company in California receive a judgement 3 days ago to evict me and enter the property. This is the same property I moved out of on September 13th , my lease ended September 31st and I had the utilities cut off on Septembet 29th and move to my new address. I informed them I was moving out when I dropped off my last payment. Is it normal for them to file a eviction to enter and why? And will that effect my credit score?

This is a completely different landlord - a past landlord in CA because this situation with Fannie Mae is in TN - correct?
Customer: replied 3 years ago.


No, same landlord Fannie Mae , represented by a management company in Califorina that has offices throughout the U.S. . But why would they need to evict if I have informed them that I am already moved out and had taped the keys to the back door with permission for them to enter. Now I am afraid this may effect my credit or my ability to purchase a home in the furture

Did you receive service/notice of their eviction suit against you?
Customer: replied 3 years ago.


No , I dont live there anymore.

The landlord must give you 14 days notice if you didn't pay the rent on time or caused damages.

The landlord must give you 30 days notice if you paid the rent on time and didn't damage the property.

When did you move out?

If they got a judgement against you - they most likely aren't going to pay the security deposit but could be looking for more money from you.


What is the judgement amount?

Customer: replied 3 years ago.


I just got off the line with General Sessions Court Clerk, she stated that they got a eviction judgement to enter the property, with no monetary amount. But I thought and judgement is not good on your credit. But I thought they should have informed me to come to court.

They should have given you notice of the suit. You should have received notice of the suit.

Did you give them your forwarding address in writing when you moved out?
Customer: replied 3 years ago.

 


No, I just informed them when I paid my last payment. And they sent me a notice 15 to 30 days before my lease end to vacant the property.

So you did receive a notice from them - you stated, "And they sent me a notice 15 to 30 days before my lease end to vacant the property."


Although you left and informed them - there was absolutely no reason for them to file suit because you already left.

I would now go back and contact the management company out of CA that they owe you your security deposit and if you don't receive it - you will file suit.

Their filing suit and obtaining judgement can be part of your negotiations that they never file the judgement and make it a record against you.


That's exactly what you should do in this situation now. They owe you the security deposit.



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Customer: replied 3 years ago.


Sorry about delay, computer crashed . Thanks, XXXXX XXXXX you now

Thanks.

I had issues yesterday with Windows downloading a bunch of updates. It took forever to download, install, reboot, then wait for the additional installation of the updates.
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