Has happened to me twice now. Key things to be aware of are, make sure your security deposit is safe - if landlord is holding it do not pay the last month rent (if not to late). If he argues, explain any damage will not be his problem anyway as he won't own the property after foreclosure. Also beware unscrupulous landlords who even try to collect rent after the foreclosure - happened to me, told him if I heard from him again I would refer it to the police as fraud, never heard from him again.

As long as you have a valid lease, are not paying substantially under market rent, and are not related to the former owner, the bank HAS TO HONOUR THE LEASE (Helping Families Save Their Homes Act of 2009 - a great act for innocent tenants) - Realtors will try and pretend you have to leave, but you have great rights now. Also, if you are lucky they won't want any rent! Lived from Nov 2010 to April 2011 rent free in VA, and bank gave me cash to move out at the end of the lease!! Current house they wanted the rent but they are offering cash for keys too. So while it is initially worrying, it can work out quite well for you. Good luck.

The big key is check the county to see if any foreclosure has been filed before you rent. If it is foreclosed on while you are there, I am sure you will get some type of mail addressed to your landlord from a mortgage company or an attorney. After the foreclosure, just stay there and let the agent take care of you and please do communicate and be honest about what your needs are. I have seen people get a few thousand dollars to assist in the relocation assistance. First and foremost, if it is in foreclosure and you have a lease, hold on to it and show the agent because that matters. Stop paying the landlord that has been foreclosed on too. Some banks will have you pay them but not likely. I work for a large mortgage company and I work in the area that sells and markets the house after foreclosure.

I am finding some banks working with tenants as long as the tenants work with the bank, i.e. communicate. Usually what will happen is you will get notified that the home you are renting is being foreclosed on. The bank will give you a timeline. Some banks, if they find it is a hardship for you, offer a 'cash for keys' program. They essentially gives the tenant some money to leave that may help offset your moving costs and your potential loss of your deposit.

I have been the landlord in this situation. I did fall behind in mortgage payments in preporation for banckruptcy (lawyer recommendation) and bank forclosure proceedings where being pursued. However, I filed for bankruptsy and kept the home. The forclosure never finalized but our tenant opted to not pay rent and trashed the place prior to finally moving out. Just because you recieve a notice of forclosure proceedings from a lawer doesnt nessessarily mean the house will be forclosed upon. Talk with your landlord and get his side before making a arbitrary decision.

what happens if you are renting a house and you have no lease and it is going into foreclosure and now the owner is putting it up for sale?

This just happened to me. The bank allowed us to live here and we kept the house nice while they showed it. Just sold now looking for a new place.