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Home being Foreclosed on/what about Sec Dep??

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angell48060

Junior Member
I am currently renting a home in Michigan. I signed a lease Feb 2009, and the lease was up last month, but am currently still living here month to month (as agreed by myself and landlord.) In January I found out that our home is being foreclosed on. I talked to my landlord about it, and he continues to reassure me that he is going to pay the taxes (he owes from 2007 and 2008). As of today, he still hasnt paid anything. He says that this is the only home that he plans on keeping, and he is letting the rest go. I am assuming that he has no intentions of paying the back taxes and indeed is going to just let the home go. The reason I say this is not only because he hasnt paid, but because we had our rental inspection, he has tons of repairs that has to be done, and he hasnt did anything. He got the final notice for that, and the inspector is coming back the 15th. He hasnt did anything. So this is my question. Should I go ahead and pay him the rent this month? I understand that I cannot live here rent free, and have no intentions of trying to. But he still has my $450 security deposit. Come April 1st he is no longer going to own the home (he owes $15,000 +). I know that if I pay him rent this month, he will not willingly give me back my security deposit. For lack of better words, he is a "slum lord" in every aspect. I dont want to have to take him to court to get it back. So this is what I am thinking of doing. I am thinking of keeping my March rent in a bank account. Then tell him that he can keep the $450 security deposit for rent. And if by some miracle he comes up with the $15,000 + in taxes that he owes, not to mention a few thousand worth of repairs he has to get done by the 15th and gets to keep the house, I will give him the money in the bank account. I am sorry if this is confusing, I just dont know what to do. I guess to keep it simple, should I go ahead and pay him, and then deal with the hassel of taking him to court to get my security deposit back? Or should I tell him to keep the security deposit as my rent this month and keep an additional $450 in my account in case it doesnt foreclose?What is the name of your state (only U.S. law)?
 


FlyingRon

Senior Member
You have to pay the rent. If the house is foreclosed, you still get your security deposit back under the same terms when your tenancy is up (barring legitimate subtraction for damage).
 

angell48060

Junior Member
You have to pay the rent. If the house is foreclosed, you still get your security deposit back under the same terms when your tenancy is up (barring legitimate subtraction for damage).
I realize that I have to pay the rent, I guess Im trying to think of way to get my security deposit back without going to court. There are no damages here, we have actually improved it quite a bit. So I know he cant keep it for damages but I did read online that under Michigan law with the security deposit (b) Pay the landlord for all rent in arrearage under the rental agreement, rent due for premature termination of the rental agreement by the tenant and for utility bills not paid by the tenant. So I guess I was thinking that if I dont pay this month, then he can keep the security deposit for rent this month, and also that way we wont have to go to court to get it back.
 

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