Landlord foreclosed; Question on security deposit in VA

[michaelhill32]

I live in Virginia Beach VA. I rent a townhome that was foreclosed on. It was then auctioned to a couple. Is there any chance of getting my security deposit back or am I hosed? Thanks

[AFFA]

re: Landlord foreclosed; Question on security deposit in VA

I wish to inform you that you can recover your security deposit. In this regard the security deposit, with any accrued interest and allowable deductions, must be returned to you by whoever holds the landlord’s interest in the property as of the date your tenancy is terminated.

AFF

[sandyclaus]

re: Landlord foreclosed; Question on security deposit in VA

I live in Virginia Beach VA. I rent a townhome that was foreclosed on. It was then auctioned to a couple. Is there any chance of getting my security deposit back or am I hosed? Thanks

By law, a security deposit held by one owner is supposed to be transferred to a new owner if the property is sold. However, in a foreclosure situation, things often turn out much differently. The owner of the foreclosed property is already in financial straits, and will usually spend any deposits they have received. And since there is already a foreclosure on their credit, the usual suggestion to sue the former owner for the security deposit is an exercise in futility, since even if you DO win a judgment, you'd fall right at the back of the line for all the other creditors who got there before you.

No, it's not right. But unfortunately, the circumstances make it exceptionally difficult to pursue a LL that does this.