collecting judgement from bankrupt landord, property now under HUD's control

[akosz]

What is the name of your state? NEW YORK (ALBANY, NY)

**This was originally posted in the landlord/tenant forum, but they felt it would be more appropriate in this forum**

In January 2003 I moved out of an apartment owned and operated by a company named "Emerge Real Properties, LLC".

I never got my security deposit back and was told that the property was being sold, their assets were frozen until after the sale, and that I'd get my money back when the transaction was complete.

I took them to small claims court, they didn't show up, and I won by default.

Of course they didn't pay, so (following the instructions on the back of the judgement form) I went back to the court to find out what I could do to collect.

The court clerk told me that several people had filed similar suits after me and that nobody has been able to collect because the company is bankrupt. She said that I might be able to collect from the new company once the property changes hands.

Then the owner of the new company, "Statewide Management Group, LLC", was sent to jail on unrelated real estate fraud charges. He apparently tried to sell someone a building he didn't own, and tried to pass it off on an uncle that doesn't exist.

Last week the local paper ran an article stating that HUD had taken over the properties from the original company (there are over 200 units in numerous buildings).

So my question is:

Is there any way I can get my deposit back? How?


I realize this is far from your typical unreturned deposit situation, but it can't be the first time this has ever happened to anyone.

Thanks ahead of time.

*akosz*

I would doubt it. You are probably going to go through more trouble than its work to collect. It really depends on your personality. Some people would be logical, "Oh, the company is bankrupt, I'm not going to get my money back." It's not fair. But those are the facts. And some will spend every free moment trying to get their money back.

[akosz]

I was ready to let this matter drop until I got home from work today and received a 1099-INT tax form from Key Bank stating my interest on the escrow account from the past year.

I called their 1-800 number and was told that the account was still open and had a balance of $885.36.

Several months ago I inquired about this account at a Key Bank branch office and was told that they had no information on the account so I assumed it was closed and that my money was gone.

I don’t want to keep paying taxes on this account forever if I’ll never be able to collect the money that is in it. Sadly, at this point I am more concerned about the tax situation than collecting the money itself.

Do you think I can still collect? Is there anything else I can do?

akosz