[JHoltzman]

I live in Arlington VA and discovered that my landlord was in default on his mortgae and that foreclosure proceedings have commenced - expect to discover the sale date next week. Per VA law, he was to have notified me in writing within 5 days of him being formally notified of his default status but he has not done so. I have paid my July rent and he holds an equal amount for my security deposit. My lease calls for 60 days notice to vacate. Since I am sure he does not have my deposit escrowed, I intend to live in the condo until 1 September or the condo is sold whichever is earlier and then vacate using the security deposit as the last month's rent. I do not intend to pay for August because I am sure that I will not see my security deposit back and only intend to provide 30 days notice since he is already in violation of the lease (notification of default and notification that I will need to move since he is losing his property). Is that a realistic plan? Finally, can I sue him for moving and other expenses since it would appear to me that he is in violation of the law and the lease?

[AK lawyer]

Per VA law, he was to have notified me in writing within 5 days of him being formally notified of his default status but he has not done so.

Is this the statute or a term of your lease?

Since I am sure he does not have my deposit escrowed, I intend to live in the condo until 1 September or the condo is sold whichever is earlier and then vacate using the security deposit as the last month's rent. I do not intend to pay for August because I am sure that I will not see my security deposit back...

Perhaps a reasonable assumption, but you don't know that. I suggest you formally demand that, within so many days, he give you details of an escrow deposit.

Also, be aware that in the event of foreclosure you have the right to continue occupying the premises. I forget what it is exactly but it may be 60 days. And in any event the buyer may want to allow you to continue renting after that date.


... he is already in violation of the lease (notification of default and notification that I will need to move since he is losing his property).

As I asked above, is this a violation of the lease or of a statute, or of both?

Finally, can I sue him for moving and other expenses since it would appear to me that he is in violation of the law and the lease?

If he is in foreclosure, it's likely that he's judgment proof. If so, you could sue him but couldn't collect a judgment. On the bright side, his suspected failure to escrow the deposit could perhaps be determined to be fraud and therefore a basis for making your claim for the deposit exempt from discharge in bankruptcy (should he declare bankruptcy).

[Fr_Chuck]

Once it sells, someone else owns the property and they are required to give you notice to move, but you will owe them the rent from they time they take ownership. Failure to pay them, allows them to seek eviction of you.

Even in default ( if he moves the sale date out somehow) if you don't pay the current landlord, he also can seek to evic you for non payment.

Housing law has not caught up with the 10's of 1000's of foreclosures happening.

Yes you can sue him for the depoisit back and any unused rent that should go to the new owner.