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We are renters and the house is up for auction due to foreclosure this month, please advice

We are renting a home that we just found out will be going up for auction due to foreclosure this month. We have asked the property management company for answers as to when we will have to move, if we will get our deposit back etc. They refuse to give us any answers and say that we have to keep paying rent as usual but I feel like this is a scam, & that we and will lose our deposit and need to move our without proper notice. We have 2 young children at the neighborhood school and do not have funds to get another place without our deposit return. I need to know what our rights are, what we should do, and who can help us. We are panicking at the thought of homelessness and having all of our things lost. We are great renters and maybe we should try to buy the house..? Please help

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Attorney answers (1)

Reputation Level 14
Once the property is sold at judicial sale, you will be contacted by the lender to let you know how much time you have remaining in the property and whether they will expect you to pay rent. The management company is an agent of the owner, not the lender, so after the foreclosure, unless the lender hires them (which is unlikely) the management company will have nothing more to do with your rent. It is not the lender's obligation to repay your security deposit - it is the owners. It is up to the lender to determine whether they will continue to rent to you or whether they will prepare the house for sale. You may want to see if you can determine when the matter will next be heard in Court and ask the judge to direct the mortgage company to give you some guidance. You may also want to see if your local bar association has free legal advice to determine how to get your security deposit refunded.

This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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