Something very interesting with regards to real estate, but unbeknownst to most renters of homes or apartments, is that renters must be very aware of exactly what they are getting themselves into when they sign a lease contract.
Due to the high rate of foreclosures these days, many apartment buildings, as well as homes are being foreclosed, and the owners of those properties abdicate responsibility to the building or its tenants upon foreclosure. So what happens if you are a renter, and you signed a long-term lease, and subsequently the owner undergoes foreclosure?
You may end up losing your security deposit, and your last month's rent, and you may be forced to evacuate the apartment with very little notice, unless you are careful to take the right steps. Therefore let the renter beware, and research the status of the space he/she/they are about to occupy. Is the landlord solvent? Are the mortgage payments up to date? Have the property taxes been paid? These questions can be answered more easily than a renter may think.
For example, most states have property records available for view right on the Internet. From there, the renter can often find all sorts of good stuff, like the mortgage amount owed on the property, the tax records, and the date the property was purchased. Many properties were purchased in the past few years with the help of unscrupulous mortgage brokers and lenders, by investors who couldn't really afford their purchases, but were able to close the deals by giving sub-prime mortgages to the lender.
As the adjustable interest rate on those mortgages climbed, many owners found, and are finding themselves unable to pay their mortgage loans, and of course the result is foreclosure. The innocent and uninformed renter can be left with no place to live, and a loss of the equivalent of two month's rent. Therefore, a renter should research all of the readily available information before signing a lease agreement. For more information, visit Miami real estate or the Miami Beach real estate blog.

Paul- I have always respected your knowledge but felt a need to share my experiences.

As a lister of REO properties, I have handled several single family homes that were occupied by tenants on the date of the foreclosure. None of the banks I work for, or any that I know of, have allowed tenants to stay. Sometimes they do cash for keys, and sometimes they have to do a full eviction through the courts.

Maybe the trend is different for multi unit buildings, but as far as I have seen, it is common for renters to get the shaft of the property they are renting is foreclosed on

- Andrea

It appears that my experience in this matter is different in this area. I only deal with 5+ units properties that are commercial and not residential loans so that accounts for the difference.

Loan Diva,
Just an FYI for you but a 5+ unit building with 80% occupancy will sell much quicker than an empty building and for a higher price due to immediate income for the buyer. The rents will also offset holding costs till the property is sold. Do you actually have any commercial experience or is your experience confined to residential properties. "This might account for the differences on your planet and mine".

Oaks, maybe you should read the original post again, and lose the self-righteous attitude? It didn't refer strictly to MF properties, which was an assumption you made.

Our neighbors accross the street a young couple with kids woke up one day to two foreclosure signs on there front yard. They rent a house and when they called where told they had to be out by end of month two weeks before Christmas. They moved in 8 months ago and paid rent and homeowner never paid bank anything. They lost there deposit and having to move right at the holidays was hard. This guy forclosed on numerous properties. I felt so sorry for them but was an eye opener about renting right now.