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It depends on the contract and the laws of your state. Assuming that this is a lease of some duration, and not just a month-to-month rental, there are two fundamental issues:1. If the homeowner is forced to break the lease due to a foreclosure, then the renters obviously should not be penalized for that. That is, they should not lose any of their deposit on that account.2. The second issue is whether the owner knew that the home was in (or about to be in) foreclosure when he entered into the lease. If he did -- if he entered into the lease knowing that he would not fulfill it and that the renters likely would be harmed financially -- then he has engaged in fraud and can probably be prosecuted for that.That all being said, chances are that you each have agreed, by contract to give each other 30-days notice. As long as neither of you break that, and are otherwise abiding by the agreement, it is hard to imagine any legitimate cause for complaint.You should check with a local real estate attorney or your state attorney general office.
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