Legal Question in Landlord & Tenant Law in Virginia
Rental Foreclosure
I have lived at my current address for almost 2 years. My lease agreement was for only one year and I was not required to sign a new lease. I received a letter from my landlord (Dec 2005), that the property was being foreclosed on by the mortgage company and that I would not have to pay rent for (Jan 2006) but he would use my security deposit to cover the January's rent and that I should hear something from the bank about vacating the property. I recently received another letter stating I should go ahead and pay him this months (Feb 2006) rent. Is this legal for him to do, when he is no longer making mortgage payments? And should he have used my security deposit to cover January's rent?
2 Answers from Attorneys
Re: Rental Foreclosure
First of all, I am suspicious that the landlord
has worked out a plan with the mortgage company
to avoid foreclosure. Don't assume that the
foreclosure is going forward. Maybe it isn't.
I don't think it makes any difference whether the
landlord is paying the mortgage.
As long as you are enjoying the use of the
apartment or house, per the lease, you are still
obligated to pay. However, as soon as your
use and enjoyment of the presmises is interrupted, your obligation to pay rent is
also terminated. (A case could be made that
the value of your enjoyment is diminished by
having to vacate early before you had planned,
and having to rush, and the landlord would be
fair in cutting you some slack, because it is
his fault.)
Normally, the security deposit is not used to
cover rent (unless the lease says so, all of
these statements can be modified by the actual
words of the lease, so you have to check that).
It is held back in case there are damages. So,
unless the lease says differently, no the landlord is not required to use the security
deposit to pay the January rent.
HOWEVER, he is obligated to hold this deposit
as real cash, so that it cannot be touched for
any other purpose, so that it is available to
be returned to you.
Re: Rental Foreclosure
Good Evening,
Your obligation to pay rent, while in possession, is not suspended because the landlord fails to pay his mortgage. However, if he no longer owns the property, he may not be entitled to the Feb. rent payment. The bank may be entitled to it. If you have not heard from the bank, or its agent, you should pay the landlord. The security deposit may, or may not, have been properly applied by the Landlord, again, this does not really mean anything for you. It was used in lieu of Jan. rent so, if you are responsible for damages, you would pay them at the end of the lease. On the other hand, the landlord, not the bank, may owe you for interest through Dec. 31st-
Robert J. Strupp
Attorney at Law, PLC