I wouldn’t worry. I would sit tight and wait for the 30 day notice to vacate and hopefully get an offer from the lender for cash in exchange for leaving the place clean. They may even offer reduced rent going forward and allow you to stay in exchange for making the house available for showings.
If your security deposit is large enough, I would sue the owner in small claims court. The owner is going to have a tough time arguing that you shouldn’t get the full deposit back. You should also be able to obtain pre-judgment interest at 10% running from the date the deposit was due back to you, plus court fees, plus interest on the judgment moving forward, plus certain judgment enforcement costs. Even if you don’t recover any money right away, the judgment is racking up 10% interest moving forward – not a bad rate of return these days.
