Landlord Bankrupt

[MichaelA]

My landlord has declared Bankruptcy and the bank will foreclose next month.
I paid my landlord 1st and last months rent plus a security deposit when I moved in several years ago. I had a 1 year lease which expired 5 or 6 years ago.

Since it is his last month and I have already paid last months rent, should I send this months rent?

And if he indeed put my security deposit in escrow, will that be transfered to the bank and (most likely) the property management company they hire?

 

[Michael Wechsler]

Are you aware of the foreclosure? Technically, you still owe the landlord the money for rent. What would I do? I'm not telling you to do this. But if I knew that the landlord declared bankruptcy, I would speak to the landlord with regard to what to do. Technically, you are owed the security deposit plus interest, which should be placed in a separate account which is not commingled with the landlord's property. This doesn't always happen. My guess is that if you deduct the amount of the security deposit owed and you pay the landlord any difference (if there is any), you won't have any trouble. At worst you can contact the financial institution before you pay anything to anyone. This is a difficult area of law and, since you won't be living in the house any longer, if it were me I might hold off with payments until I'm sure that my security deposit is coming back to me. At worst, you'll get a notice of nonpayment of rent from someone eventually and can handle it appropriately. Good luck.