Call the sheriff's department first, Baker said. Find out how long the foreclosure process takes. Is it 60 days or 90 days? Then you will have a timeline to work with and time to prepare for the worst-case scenario.
Next, get on the Internet. Find out the rental laws in your state. Some states, including California and Illinois, have recently passed legislation giving renters a grace period, ranging from 30 days and up, to stay in a property after it has been sold in foreclosure. Other states are considering similar legislation.
The U.S. Department of Housing and Urban Development outlines tenant rights by state on its website at www.hud.gov.
The lender's name or its lawyer will be on the eviction notice. Contact either one to let them know you are in the property. Find out what your options are. Will the lender let you sign a new lease? Or is the bank offering some cash assistance for moving out? Don't let the lender bully you into moving out sooner than stated by law.
If you are nervous about negotiating with the lender on your own, contact a local nonprofit housing counseling agency for help. HUD's website lists agencies by state, or you can call (800) 569-4287.
You also can do a little digging into your landlord's financial situation if you are worried about a possible foreclosure. Go to the county courthouse or its website and do a rudimentary background check on your landlord.
District court records or the county recorder's office will show if any foreclosure actions or judgments have been filed against your landlord. Are there any other records showing financial distress, such as past or present bankruptcy filings? These can be telltale signs of a landlord strapped for cash, Baker said.
Also, call your local Better Business Bureau to see if there have been any complaints against your landlord. This can be a clue that something isn't right.
Last, has the condition of your rental property suddenly deteriorated because of neglect? If the landlord isn't making repairs, maybe it is because he can't pay for them or doesn't want to spend money on a property he is about to lose.
In the meantime, save some money in a rainy-day, forced-out-of-my-home fund.
