Need help with Mass Law on Landlord & Tenant Rental Agreement Issues!?

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Toony

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my question is,
what are the consequences/penalties if you do not give your landlord a full 30 day notice under a tenant at will lease( we gave her 22 days due to an unfortunate circumstance) , our landlord refuses to return our security deposit($1000) to us. What do we do?

Here's exactly what happened.
my boyfriend and I have been living in a tenant at will apartment since May of 2008. Unfortunately we both lost our jobs in October and when we were rejected (unfairly) for unemployment benefits in early December (about 2 weeks ago). We notified our landlord soon as possible that we simply can not afford to continue living there anymore. The unemployment was our only way out to rent and living expenses after cashing our savings for rent since we lost our jobs.

When we first moved in, we paid a security deposit of $1000 written in the contract. We notified our landlord of our situation on December 8th, the day we found out we were rejected for unemployment benefits. We've moved out over the weekend and has cleared and cleaned the apartment and it is ready for our landlord to do a walk through. When asked about when we will be receiving our security deposit. She told us that because we didn't give her 30 days notice, that we will not be getting any money back. She said she doesn't have the money to give back to us,, i asked her i thought was the security deposit was put in an escrow account ( we went thru a RE agent and paid Realtor's fee which is how the tenant at will contract was drawn up, our realtor told us that the security deposit should be in an escrow account) but our landlord said she did not do that because she only received $1500, $1000 for rent and she used the $500 to pay the realtor (which doesn't make any sense at all, the realtor fee for tenant was $500 and that should not be coming out of our security deposit). She is basically telling us that she is not giving us the money back.

My question is, i see that the law states a 30 day notice,, but does anyone know what are the consequences/penalties if you have an unfortunate situation like what occurred to us, gave 22 day notice instead, which was soon as we found out about our situation, and if we will still going to be able to fight for our security deposit legally? $1000 is a lot for us right now and every little bit helps.

If anyone has any idea as to what we should do, any suggestions, opinions... please let me know ASAP~ Thanks a bunch.
 
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