I live in Virginia and I am a renter through a rental agency and the house we rent was foreclosed upon. We know we have 90 days to move out and we know the full security deposit will be refunded to us. The rental agency wants us to continue to pay rent to them while we are in the house, which is what I don't understand... I don't see why we would pay the rental agent anything because they don't have a stock in the house anymore. The rent no longer gets filter to a landlord to pay the mortgage. On top of that, the rental agent said that the buyer (ie: the bank) could call us and harass us move out sooner thinking that we didn't know about the 90 days, so I'm wondering why the heck would we pay the rental agent anything? Please tell me what the current law or precedent is in Virginia.

Thanks!

You do indeed need to pay rent, but to the owner of the property. Up till the date the property is actually foreclosed, you of course owe the agency, after that you owe the rent to the bank.
Yes the bank may or may not ask you to leave sooner

It depends upon the exact date that the foreclosure is effective. At or before that date, the bank should be giving you written instructions regarding payment of the rent from that date forward.

Keep in mind that, although the bank is required to give you at least 90 days to move, it might not want you out and won't send you such a notice at all.

It also depends on the wording of the contract that the rental agent has. It is probable that their contract provides that it continues if the property changes hands. If that is the case, then they are correct in telling you to continue to pay them.

Also, if you have a lease, you can remain until the lease is up.

So you can ask the rental agency to show you their legal justification for continuing to pay them. But frankly, I would do so. You should get their instructions to continue to pay them in writing. You should also pay them by check or money order so you have proof of payment. So until you get instructions from someone proving they are the owner to make your payments elsewhere then continue to pay the agent. If the new owner says something, you show them the written instructions and proof of payments and tell them to go after the rental agent.

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Originally Posted by ScottGem

It also depends on the wording of the contract that the rental agent has. It is probable that their contract provides that it continues if the property changes hands. If that is the case, then they are correct in telling you to continue to pay them.
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Maybe. But if I were the new owner, my position would be that I don't care what the rental agent's contract says: I wasn't a party to that agreement. If course the bank may choose to keep the rental agent on-board. But, if so, the bank should give the tenants notice to that effect.

If the rental agent gives the OP notice, in writing, that payment should continue to be made to them, then, until the receive notice to the contrary, the should pay them. The owner is purchasing the property subject to contracts involving it. So by purchasing the property, they are assuming the contract. If they don't assume the contract it is incumbent on them to inform the Tenant where to pay the rent.

Either way the OP is protected and should continue to pay the agent.