Legal Question in Real Estate Law in California

Re: Security Deposit Transfer

In the case of a foreclosure, the security deposit is not transferred from the homeowner losing the property to the lender, and therefore, the lender is not responsible for your security deposit. The foreclosure acts as a very big blade cutting off everything that occured prior to the sale, including your lease. When the foreclosure sale takes place, write to the homeowner and advise them that you expect to receive your full security deposit within 21 days of the sale. They cannot withhold for damages as they no longer own the property. If they fail to return it (which they may well), then you will need to sue them in small claims court to recover your deposit.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.