My RE lawyer advises against this: "failure to have a separate escrow account will forfeit your right to security deposit funds in all instances."

And Generally how long does the TOPA process take, is there a 'if no response in 60 days then rights are forfeited'?

What I started doing is requiring a 2nd security deposit no matter what..I also gave all my tenants an "out clause" which requires them to forfeit their deposit, give me 30 days notices, and require an additional months rent to leave.

If they back out of the deal after it is started, typically they forfeit the $5000 down and all the extra money they've been paying each month...the ideal is that they end up buying so you get the sale and they get the house.

The total amount was due 14 days prior to arrival.If they canceled 30 days or more prior to arrival, they would forfeit half their deposit.If they cancel less than 30 days prior to arrival, they forfeit all funds deposited.

We have a clear TREC contract that explains that the deposit is forfeited if the previous owner (lease back situation) does not vacate the property on or before July 15th without damages.

I would have to see your HUD paperwork, but there's typically a requirement for the Tenant to abide by your written lease agreement or they can forfeit their voucher.Find an eviction attorney and go that route.

And there were a couple of deals where I forfeited my EM because of that very thing.

So it is pretty much an all cash affair (no financing contingency)  And if you don’t come up with the cash the day after the auction, you forfeit a 5% deposit that you had to have placed in order to bid.Usually the deposit that you pay to bid is collected on the day of the sale, and is not refundable.

@Andy Gross What are you saying will be forfeited?