Legal Question in Real Estate Law in Virginia

Tenant Rights When a Short Sale Occurs

I am currently renting a house in VA. I have 29 months left on my lease. My landlord's agent has informed us that the house is now on short sale and will be listed on Tuesday. What rights do I have? The lease only states that my owners have to give me a notice if one of them is called up for active duty. There's nothing in there covering the scenario if they default on their mortgage.

We are going to put in an offer on the short sale but I feel that should be a separate issue. If they are not making their mortgage payment, why should I continue to pay rent?

Please advise.


Asked on 7/20/08, 7:06 pm

2 Answers from Attorneys
Susan Allen The Law Office of Susan E. Allen, PLLC

Re: Tenant Rights When a Short Sale Occurs

If the deed of trust was granted to the lender prior to your lease, it may be that your interest in the property is "subordinate" to the lender's interest. If you refuse to move, the lender will likely serve you with an unlawful detainer and ask for a writ of possession. I suggest you take your lease to a real estate attorney who will be able to determine an appropriate course of action.

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Answered on 7/20/08, 7:14 pm
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Tenant Rights When a Short Sale Occurs

If the property is sold to a third party, and not foreclosed on, the buyer may be obligated to the lease terms. I agree, have an attorney review the documents.

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Answered on 7/20/08, 7:36 pm


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