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Signed Lease & Paid Deposit On An Already Foreclosed House

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thecroth

Junior Member
In Asheville, North Carolina.

My three roommates and I (4 of us) all signed a lease and paid the $1850 deposit on a house with the landlady that we thought owned the house at the time. It turns out that the house had already been foreclosed by the bank a few days earlier. The landlady neglected to notify any of this and accepted the deposit anyways. We now have to get the deposit back (hopefully she will just give it back with no problem) and find somewhere else to live. My questions:

-Do we have any legal options here?
-Not that there would be much interest, but she should be responsible for paying us interest on the $1850 for the time that it was in her possession in addition to just giving it back to us, right?

Thanks!
 


HomeGuru

Senior Member
In Asheville, North Carolina.

My three roommates and I (4 of us) all signed a lease and paid the $1850 deposit on a house with the landlady that we thought owned the house at the time. It turns out that the house had already been foreclosed by the bank a few days earlier. The landlady neglected to notify any of this and accepted the deposit anyways. We now have to get the deposit back (hopefully she will just give it back with no problem) and find somewhere else to live. My questions:

-Do we have any legal options here?
-Not that there would be much interest, but she should be responsible for paying us interest on the $1850 for the time that it was in her possession in addition to just giving it back to us, right?

Thanks!
**A: the foreclosure process may take several months. If the lady had title to the property at the time you gave her the deposit, then she did not do anything wrong.
 

thecroth

Junior Member
Back in December the bank had told her that the house was going to be foreclosed. The foreclosure process finally finished four days before we signed the lease and paid the deposit meaning that at the moment that we signed it, she did not own the house anymore. She is in the process of being evicted. She did give us the deposit back fortunately.
 

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