I am renting a house. The owner verbally informed me 30 days ago that the house is going into foreclosure. Landlord said we can stay without paying rent until we find another place to live. Today, the owner called and wanted to know if I intend to use the $1,300 deposit to stay 1 more month. Owner/landlord wants to come into house and get stove, hot water heater etc. Can landlord/owner keep deposit as rent when home is in foreclosure? Can owner/landlord come into property and take items such as stove and hot water heater before we vacate?
Both parties are bound to the lease terms, regardless of the fact that now the landlord is facing foreclosure. So the owner cannot keep the deposit for rental payments unless you have defaulted on paying rent. The landlord must refund the security deposit minus for any damages caused beyond ordinary wear and tear. The owner cannot come into the property and remove anything from the premises before you vacate. Doing so is a breach of the landlord's lease agreement. At this time, the landlord has breach the terms of the lease in failing to provide habitable property, you have grounds to sue the landlord for the breach of the lease and can seek compensation for any costs associated in having to prematurely relocate.http://www.keytlaw.com/azrealestate/tenantforeclosure.htm
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