Foreclosure Purchasers Liable For Refund Of Tenant Security Deposits In California

In California, The Modesto Bee reports on the story of a tenant in California who rented from a landlord facing foreclosure. After foreclosure, the tenant was forced to move, but was promised a refund of her security deposit by her now-former landlord. The landlord never refunded the money. According to the story, in California:

• Civil Code Section 1950.5 states that the property's new owners "shall be jointly and severally liable with the landlord for repayment of the security" deposit. That means that if the previous owner/landlord doesn't follow the law and return the security deposit, then the new owners have to pay the tenant what is owed. In [this tenant's] case, that was $1,000.

After being contacted by The Bee, the foreclosing mortgage holder and now new owner sent the tenant a check for $1,000. For more, see New owners liable for refunding deposit. equity skimming unwittingly gamma