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Landlord Foreclosure -How to recover security deposit

Brooklyn, NY |


Our management can't be reached, the building is undergoing foreclosure. A new receiver appointed by court showed up at our door demanding to pay rent to him. Because he was threatening us with eviction we paid, even though this month was our last month in the current lease and was paid in full to the previous landlord. Now, the receiver is telling us that we have to get back our security deposit from old management (which appears doesn't exist anymore) and claiming that when we move out our last month will be free. Although it's not mentioned anywhere in the new lease. What should we do, we have a feeling we are being ripped off two months rent which equals $8,000. Please advise on further actions.

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Attorney answers 2


If the prior landlord or its management company did not transfer the security deposits to the receiver, then your cause of action is against the former landlord and/or its agents.

My direct line: 212-561-5599 ext 803. If this answer is helpful and/or the best answer, then please indicate it as so. Thank you. This answer is provided for informational purposes only and does not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This answer is not intended to create, and does not create, an attorney-client relationship.



Thank you for your answer. What if we decide to stay in the building without signing the new lease? Just staying that extra month since it was covered by our security deposit

Michal Falkowski

Michal Falkowski


Then the receiver has a cause of action against you for that month's rent. It seems that the receiver is already giving you your last month rent free though..


you should hire an attorney familiar with these situations. You should also demand more information. I also hope you have all your receipts and/or canceled checks.

The advice I have given does not bind the parties in any manner and is merely given as a courtesy.

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