Question: Can my landlord claim any damages and keep my security deposit if the house is in foreclosure?
Yes, the landlord can. Your contract is with the landlord, not the bank, so as long as you remain in the home and the landlord remains the owner of the home, the landlord can assert that you damaged the house and hold on to your security deposit. Of course, if you did not damage the property, then the security deposit must be returned. Depending on how your lease was written, it is more than likely that your lease will only terminate when the landlord is no longer the owner of the home, meaning he can try to enforce the provisions of the lease until the bank takes possession of the property.
February 19, 2009