Landlord Breaking Lease before move in date

[J Paige]

I know this is looking at the issue from the wrong side for most of you, but would love some input.  We signed a lease on house just under 3 weeks ago ~paid the security deposit at that time, which has been cashed.  We are due to move in in less than 2 weeks, but today rec'd a letter stating our application is denied because of credit issues.  Is this really legal for a landlord to do?  What are our options?  They have not returned our $1750  security deposit.  Our current lease is up a the end of this month.  We suspect they realized they could get more for the house than what they offered it to us for.

[Account Closed]

If you have a signed lease, then it's too late for them to deny your application.  You have a contract that you can enforce.  

If I was you, I'd send them a demand letter to honor the lease, or you intend to sue them and have a judge order them to do so, and to also pay any of your court costs and out of pocket expenses incurred from their breach of contract.

You have a signed contract.  If they break it, they are in breach of contract and you have the right to sue them for doing so, and for any costs you incur because of their breaking the contract.

They're hoping you're too stupid to know your rights.  It will be fun to let them know you're not stupid, won't it?  :-)