There are signs to watch for that may signal your landlord is facing, or in the process, of losing the home you're living in to foreclosure, including:

• If your landlord stops responding to your phone calls, emails or letters
• If he/she doesn't make requested or urgently needed repairs
• If he/she cuts off previous, regular services like lawn maintenance
• If your utilities are shut off. If your monthly rent payment includes utilities and they're shut off, it may mean that your landlord is not paying the bill and possibly using all of the money you're paying to help pay the mortgage on the home
• If your landlord is allowing you to rent the home while he/she has it on the market to sell and there have been few or no potential buyers come through the property for several months it may signal trouble. If your landlord has not explained why he/she is selling the property it may be because he/she is having difficulty paying the mortgage and needs to sell to pay off the loan. Depending on how far behind he/she is on the loan, the longer it stays on the market without selling the more likely he/she may be verging on foreclosure. Likewise if you are living in a multiple-unit property (i.e. a duplex or triple-decker) and the other units have gone without renters for a long period of time. Or if you know your landlord owns other properties in the area that are without renters it can all signal that your landlord is trying to sell off investment properties to pay off the mortgage loan and avoid foreclosure.

Unfortunately renters typically have few legal rights. If your landlord is not paying the mortgage in full on time every month, the lender (bank, credit union or other financial institution) that made the home loan can foreclose. Foreclosing means that the lender is in the legal process of taking the owner's property to satisfy the debt that he/she owes. The lender can actually take back the property or sell the property to pay off the existing debt. When foreclosing on a home, a lender is required to post notice of default for four consecutive weeks in the local newspaper. After that, the lender can have an eviction noticed posted on the property, giving you just 2 or 3 days to pack and leave. Landlords are not required by law to notify renters about possible foreclosure. Once the lender takes possession of the property from the landlord the lender can - and most do - have the local sheriff's department ensure that the current tenants leave, and then the locks on the doors are changed.

What You Can Do

While the law does not offer much protection for renters, it can be worthwhile to see what provisions were included in the legal contract that you signed to live in the property (if you signed a contract in the first place.) Check to see if there is a mention of any foreclosure-related rights you have, such as 30-day notification, return of security deposit and any rent money you paid in advance (most landlords require at a minimum both the first and last month's rent to be paid when signing a lease). In addition to knowing what you originally agreed to, you can also possibly obtain help by:

• contacting a legal aid office in your area to see what free or reduced-rate services and assistance may be available. A lawyer may be able to help you get money owed to you (i.e. security deposit, rent paid in advance, etc.) and negotiate with the lender foreclosing on the property to allow you more time to stay in the home.
• contacting the lender holding the loan on your property to see what options may be available. If you are able to make your rent payment, depending on how your rent payment compares to the monthly mortgage amount on the property, the bank may allow you to continue living there for a short period of time. If you can qualify to purchase the property, the lender may be willing to discuss selling the home to you outright or to create a lease-to-own situation where your monthly rent payment is applied to the loan balance and over time. Lenders do not want to deal with vacant properties, which can be difficult to sell, subject to vandalism, etc., but they also do not want to play the role of landlord. They are most interested in selling the property quickly to recoup their loss.
• contacting your city or county human services department to determine if you can get help through a financial emergency assistance program to come up with needed money for a new place to live - i.e. first and last month's rent, security deposit, etc.
• if you have received notice from the bank holding your landlord's loan, contact the lender and ask if they would compensate you for leaving the property in "broom-swept" condition. By leaving the space clean and in good condition for the lender to put on the market quickly, you are saving the lender time and potentially money they would have to spend to clean the property.
• getting in touch with a local housing resource center or housing counseling agency to learn what housing alternatives may be available in your area.