[Jags313]

I'm renting a house in virginia that I just found out is being foreclosed upon. The landlord won't answer his phone or emails inquiring about the foreclosure. There is an auction for the house on nov. 8. and the winner has to close on the house in 15 days.

I want to know what my rights are?

Is my lease still valid with the change in ownership of the house?

Can the new owner evict us and how fast?

I'm also about to pay rent.
Who do I pay it to and how much since the owner will change?

What happens to the security deposit I paid to the old owner?

Any help is appreciated...

[mr.yet]

Security deposit should be in a escrow account, and should be refund to you, or possibly transfer to the new owner.
Your lease is a contract and the new owner will have to honor it. They probably will want you to stay, the foreclouse process doesn't effect you lease, the new owners this is mostly likely and investment to them.

[ScottGem]

I'm renting a house in virginia that i just found out is being foreclosed upon. The landlord won't answer his phone or emails inquiring about the foreclosure. There is an auction for the house on nov. 8. and the winner has to close on the house in 15 days.

I want to know what my rights are?

Is my lease still valid with the change in ownership of the house?

Yes, the new owner has to take on existing obligations of the previous owner.

Can the new owner evict us and how fast?

Not without cause and not before the end of the lease.

I'm also about to pay rent.
Who do i pay it to and how much since the owner will change?

Until you receive official documentation to the contrary, you continue as if you didn't know about the foreclosure. I would make sure any payments I make is traceable. Use a check or money order so you can confirm its receipt.

What happens to the security deposit I paid to the old owner?

This may depend on the laws for VA. Check out the rules on Security Deposits. You can use the sticky note at the top of this forum to link to VA laws. Either the deposti is returned to you or transferred to the new owner.

[excon]

Hello jags:

You've gotten good advice.

The only thing I would add, is that after the closing, I would not assume that the old landlord transferred your deposit to the new landlord, even though the law most likely requires him to do so. Keep in mind, the law required him to pay his mortgage and he didn't do that either.

The deposit is the FIRST thing I would mention when you meet your new landlords. If the old landlord DIDN'T transfer it, politely remind the new landlord that that's not YOUR problem.

excon

[ScottGem]

excon is right. You might even consider showing up at the auction to make sure that potential buyers are aware of the conditions. The new owners might want to try and have the deposit factored in to the sale.

But the new owners WILL be taking on the liabilities of the house and the deposit is one of those liabilities.

You should be prepared, however that the buyers will be buying for their own use. This means they may not renew your lease once it expires so you will need to be prepared to move.

[Cvillecpm]

I'm renting a house in virginia that i just found out is being foreclosed upon. The landlord won't answer his phone or emails inquiring about the foreclosure. There is an auction for the house on nov. 8. and the winner has to close on the house in 15 days.

I want to know what my rights are?

Is my lease still valid with the change in ownership of the house?

Can the new owner evict us and how fast?

I'm also about to pay rent.
Who do i pay it to and how much since the owner will change?

What happens to the security deposit I paid to the old owner?

any help is appreciated......

No - you have no rights to occupy after the foreclosure. You need to make arrangements to move ASAP. Although the bank may tell you differently, the new owner does not have to honor your lease and may be able to have the police put you out as tresspassers.

[excon]

No - you have no rights to occupy after the foreclosure. You need to make arrangements to move ASAP.

Hello again:

I don't know about that. In terms of the lease and the tenants' rights, why would a sale by foreclosure be any different than any sale? I don't think it would be.

However, I'm happy to learn...

excon

PS> Course, Cvill IS a property manager in the very state we're talking about...

[Jags313]

From what fairfax county consumer services has told me a sale by foreclosure is different from any other sale and the winner of the auction has no obligation to honor my current lease, as soon as he closes on the house I will be trespassing.

I think I need a lawyer...

[ScottGem]

You need to get the code citation for that law. It is not consistent with other states. But if what they are saying is correct, you don't need a lawyer you neeed a realtor to find you someplace else to live and a moving van to get you there.

[Cvillecpm]

EX - a foreclosure actually BREAKS the chain of title... TECHNICALLY, any mortgage company has the right to approve any tenant in a property they hold as security and although they NEVER do this, they are required by most state statutes to actually POST the property - meaning they post a notice of foreclosure on the property - before they actually DO initiate foreclosure... this gives any resident/tenant notice that they are about to loose their home...

As posted previously, lenders would never lend on investment property if they could not foreclose and remove the occupant - lease or no - so they could re-sell the property and recoup their money.

Lease or no lease, the tenant will have no right to occupy after the foreclosure and they are not due any notice after the date of the sale.

[Jags313]

Here's a link that explains things. It's essentially what Cville says above.


http://www.abanet.org/rppt/public/re...reclosure.html

[ScottGem]

When I'm wrong, I admit it, and this time it appears I'm wrong. I'm very surprised that tenants are not protected more than this.

So it comes down to what I said previously. You need to start looking for a new place.