1) do you need to move in before 1/1/2011?
2) do you need extra $1200?
If you are not in hurry and can bear with $1200, you can ask for $x000 deposit and will refund it upon vacancy before 1/1/2011 and same condition of the hosue. Give the owner a break in holiday season and you could have the house in good condition. Be prepared for eviction early next year. You have $x000 to cover some of your loss.