Utah Landlord Facing Foreclosure, Previous Tenant Won $9k Deposit Lawsuit. Are We About To Lose Our $8k Too?
Location: Salt Lake City, UT. We signed a lease in May 2026 (through May 2027), moved in June 1, and paid an $8,000 security deposit.
We later discovered:
Landlord stopped paying his mortgage in November 2025, before renting to us.
House is scheduled for foreclosure auction in November 2026.
Since September 9, we’ve had 3–4 showings every week.
Previous tenant sued him over an unreturned $9,000 deposit and won.
American Express is suing him for $31,000.
He works in finance managing annuities, and we learned he canceled his professional liability and vehicle insurance.
We requested a 10% rent reduction and reasonable showing limits, but he claims he has “no control over it.”
Our biggest concerns are the repeated invasion of privacy and the possibility of never recovering our $8,000 deposit.
Given his financial situation, even winning a lawsuit might not mean actually collecting the money.
Under Utah law, what can we do now to protect our deposit? Can we limit showings or seek compensation? Would the foreclosure affect our lease or our right to recover the deposit?
We’re planning to consult an attorney but would appreciate advice from anyone with experience in Utah tenant law.
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