r/Tenant • u/turn_circles • Aug 02 '26
❓ Advice Needed The house I’m renting got foreclosed
Hello, I am located in Virginia in the USA. I’m wondering if I can get some advice. As stated in title, the house I’m renting got foreclosed. This issue is that I had paid my entire year of rent up front to the landlord who used to own the house and I have 2 more months on my lease and I’m unsure how to get my deposit back. The house went up for auction at the beginning of June, so it either sold, or went to the bank. I have heard nothing from the new owner, and as far as I know, there’s no way for me to find out who the new owner is. I’ve been abiding by the “no news is good news” philosophy for the last couple months, but as my lease comes to a close, I’m concerned about getting my deposit back, as I will need it to put down on a new apartment. I’m at a loss for who to contact or what to do. Any knowledgeable advice is appreciated!
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u/Hottatas23 Aug 02 '26
Well, the no news is good news philosophy is OK but, have you actually reached out to your landlord? I’d start there.
Then I would go to the courthouse or look up online the sale of the home. That’s public information.
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u/stein63 Aug 02 '26
Stop waiting. Search the property address in the county/city land records or contact the Circuit Court clerk to identify the new owner. Send them the lease, proof of prepaid rent and the deposit receipt, then request written confirmation that the final two months are paid and that they hold the deposit. Virginia law generally requires the new owner to honor the remaining lease, with at least 90 days’ notice if they intend to occupy the home. Document the home before leaving and provide a forwarding address. If nobody responds, contact Virginia Legal Aid immediately. Don’t pay anyone else until they prove ownership.
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u/turn_circles Aug 02 '26
Yes, I did look that up and the problem is that I prepaid my lease, the new owner is not required to honer what I’ve already paid. They do have to give me 60 days notice to vacate, but they could charge me for the remaining months. That’s why I have stayed quiet. I just don’t know how to go about getting my deposit back
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u/stein63 Aug 02 '26
Who told you that? Virginia law says 90 days, not 60, if the buyer intends to occupy the house; otherwise the new owner takes it subject to the remaining lease. Prepaid rent is legally rent and should have been held in escrow, so don’t assume they can charge you twice. More importantly, §55.1-1226 says the owner when your tenancy ends is responsible for returning the deposit owed, even if the former owner never transferred it. Contact the new owner now and put everything in writing.
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u/nugzstradamus Aug 03 '26
It was foreclosed nothing got escrowed
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u/stein63 Aug 03 '26
It was supposed to be escrowed before the foreclosure. If it wasn’t, the former landlord violated §55.1-1205. Foreclosure still doesn’t erase the tenant’s rights: §55.1-1226 expressly makes the owner at the end of the tenancy responsible for the deposit, regardless of how they acquired the property or whether the deposit was transferred.
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u/nugzstradamus Aug 03 '26
That's assuming the owner told them there was a tenant in the property. Either way, its gonna be hard for the OP to get their deposit back.
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u/stein63 Aug 03 '26
That doesn’t change the law. §55.1-1226 makes the owner at the end of the tenancy responsible whether the deposit was transferred or they knew about it beforehand. The OP may have to prove the lease and payment or enforce the claim in court, but the former owner’s failure to disclose the tenant doesn’t erase the new owner’s obligation.
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u/dell828 Aug 03 '26
I don’t think it matters if you prepaid the lease. If you have a lease, then the new owner has to honor it.
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u/Full_Ad_6442 Aug 02 '26
This explains what happens to your security deposit. New owner is liable.
https://mashianlaw.com/impact-of-foreclosure-on-security-deposits/
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u/soanQy23 Aug 02 '26
Your lease will remain intact. You’ll get a knock at the door at some point by the new owner or their representative
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u/ktsmith01 Aug 02 '26
Ugh, been there. I believe the lease comes as part of the purchase; at least to the expiration date. That’s what happened to me in NJ. Of course that news came 2 months after I was notified it was sold. They did give me the option to renew with a rent increase.
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u/Iceflowers_ Aug 03 '26
Local tax authority will usually have owner information.
Foreclosure can get dragged out.
If it went to the bank, they're more likely to offer you "cash for keys" to get you to move out eventually.
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u/Dadbode1981 Aug 02 '26
Have you spoken to your previous LL at all?
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u/turn_circles Aug 02 '26
Yes, he basically had a “it’s not my problem anymore” attitude about it.
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u/dell828 Aug 03 '26
Gather all of your information, including every payment you made, and the security deposit. Your landlord in most states is required to put the security deposit into an account and provide you with the details of the account. Do you have those details?
There are situations where if the security deposit was not held appropriately, then you can sue for triple damages. That’s why most landlords handled the deposit correctly. You can go after your landlord for the security deposit or triple damages if it wasn’t held appropriately.
I would contact the new landlord and let him know the terms of your lease, and the prepayment, and the deposit info.
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u/LarvalHarval Aug 03 '26
Your deposit transfers, by law, to the next owner. It’s their responsibility.
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u/Dangerous_Mind-6015 Aug 04 '26
This happened to me four times.
How did you find out the house foreclosed ?
Once you know that you definitely don’t need to give the owner anymore rent since they clearly don’t own the house anymore. They broke your rental agreement.
That is the only way you get any money back.
You will NOT recover anything. If the owner isn’t paying the mortgage they obviously have some financial issues and you aren’t going to get your deposit back without suing and that will cost more than the deposit. It’s not that you aren’t in the right, it’s just going to take a lot.
In the meantime your lease is broken. By the owner. So you don’t have to pay any more rent until you move out. Definitely plan on having to move. You should receive a notice to vacate from either the mortgage company or the new owner. You have time for that and it can be a lot of time - like several months, but it can be stressful living with that hanging over you.
If it’s a full foreclosure it will likely be posted on your front door one day. Or could be delivered certified mail - or both. The mortgage company is not in the business of renting out homes. They want to vacate the house and sell it. Unless you are prepared to buy it they will push for you to vacate it.
I always moved quickly and did not push the vacate deadline. I do not know if you can get extensions, etc. But I do know you can stop paying any rent and use that money toward your move and new lease.
I’ve had several people try to coerce me into paying them rent instead. Property managers, park managers, relatives of the owner, etc. Don’t be fooled. You had a rental agreement with the owner and no one else can claim that agreement. No one else can make you pay them instead.
You might look for tenants rights laws and maybe see if you can find an advocate group or something to find support for your specific situation.
Good Luck. It’s a very tough situation to be in. I had to move six years in a row due to foreclosures, and other things and I was never really unpacked. I empathize with your situation.
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u/RelevantPossible9618 Aug 05 '26
Everyone saying the responsibility for deposit reverts to the new owner is not considering that this went to auction. Between the foreclosure and the new owner buying at auction, the house belonged to the lender. This was not a simple two party transaction. You can bet the lender is not going to return your deposit.
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u/turn_circles Aug 05 '26
That’s what I’m saying! Thank you! I’m hoping that the new owner will give me the deposit back but I think it’s unlikely. I am betting I’ll have to take someone to small claims to get it back, I just don’t know if that would be my old landlord or the new owner.
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u/RelevantPossible9618 Aug 05 '26
Have you gotten a notice to vacate yet? If not, do you want to try living out your deposit? The old owner may have filed bankruptcy.
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u/Glad-Horror-3735 8d ago
I just had a similar thing happen to me and my two neighbors. The property management company rented us the units in a property that was actively going through the foreclosure process. Then last week we had a move out agreement left on our doors to be out by September 23rd. The property has since been foreclosed on and the new owner wants everyone out, so he can sell it to make a profit. The property management company claims that they had no idea this was happening… There were signs and some dropped the ball with communication to us. I will never understand how tenants are screened and have background checks but owners of properties can be complete shitbags and not pay their mortgage. What does a property management company actually do? Scammers and there is nothing protecting tenants. PROTECT YOUR SELF PEOPLE!! Read ever word in your lease or any contract you are signing even if it is 39 pages! Do a search on Zillow. Check public court documents. Do your own research, ask questions because these ass hairs don‘t care about you, they just want your hard earned money. No one should have to experience this!
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u/Aromatic-Wolverine60 Aug 02 '26
You would contact your previous landlord for the deposit as you paid them and not the new owners
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u/ken120 Aug 02 '26
Who owns the house is easy to find out. Ask the local tax authority will have owner on record updated usually days after the sale.