Rental Basics in San Jose>Question Details

Keri York, Other/Just Looking in San Jose, CA

The house i am renting is in short sale. Who is resposible for returning my deposit? The bank or the landlord?

Asked by Keri York, San Jose, CA Mon Apr 6, 2009

My landlord hasnt paid the mortgage in 7 months and the house went into short sale. Im told an offer has been acccepted and approved by the bank in which escrow will be closing in 30 days. My landlord made no effort to talk to the property managers of the rentals I have applied for which caused me to be denied for 3, I have now finally found one where the property manager was kind enough to allow me to provide her with my own documentation to prove the information on the application because she couldnt get a call back from my current landlord. I was approved for the property and must put a deposit down. My current landlord has left the country and I cannot retrieve my $2650.00 deposit. In a short sale situation, is my current landlord responsible for the deposit or is the bank? I have only lived in this house for one year and have improved the property tremendously, paid the rent on time and have been an ideal tenant. I need the money now for the new house.

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2
at least you can choose to not pay the rent anymore.
depending on your rent and how long it takes to close the escrow, you can recoup some of your losses.
0 votes Thank Flag Link Mon Apr 6, 2009
Hi Keri - It is unfortunate that you are an innocent bystander and being harmed by this mess. You should consult an attorney to know exactly where you stand. They might know of any laws recently passed to protect people in your situation. Don't expect to get more than advice, as there is isn't enough money to sue over. You could try Small Claims court, but if the landlord is missing, that would be futile also.
The bank is not responsible for your deposit. However, I have heard of some banks providing relocation money to people in your situation. After all, they have a vested interest in your treatment of the property. Under no circumstances should you vandalize or commit any criminal act out of frustration or revenge. That will just make your problems worse. Find out the name of the bank and contact them. Appeal to their good will policy. You could also ask them for a letter explaining your situation.
Best of luck,
Roland
0 votes Thank Flag Link Mon Apr 6, 2009
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