In most cases, the landlord does not "need" to notify you before listing the property for sale, but they must have your permission to put a sign on the property and to allow visits by agents and prospective buyers. In most cases, the lease will provide access by the landlord or their agents with written notice of the sale and oral notices of inspections or tours at least 24 hours in advance. You have a right to "quiet enjoyment" of the property and, unless the lease agreement modifies the usual practice, you do not have to allow access to the property outside of "normal business" hours even with 24-hour notice. Consult a real estate attorney to review the specifics of your lease. Ideally, the landlord will offer a reduction in rent as compensation for your cooperation with the sale.

Whether the landlord committed fraud is a legal question. More critical at this time is understand your rights as a tenant. You and the landlord must both comply with the terms of the lease while the landlord is still the owner. You must continue to pay rent even if she is not making mortgage payments. If you default, you may receive a 30- day notice to pay or quit after which eviction proceedings could begin. The good news is the the recent federal law, the Protection of Tenants at Foreclosure Act mandates that, with some exceptions, the new owner after foreclosure must (a) provide a 90 days notice prior to eviction; and (b) allow tenants with leases to remain in the property until the end of the lease unless the new owner will occupy the property as their principal residence. In that case, the lease can be terminated in 90-days. This law applies to "bona fide" tenants who are not related to the owner, whose lease is an "arms-length transaction," and who are paying rent at market rates.

If the house is sold at auction or taken back by the landlord's lender, you owe rent to the new owner and will need to contact them. Cooperation with your landlord and their trustee could benefit you and give you more time. The new trustee may offer you moving expenses, "cash for keys, or other incentives to move sooner than the 90-days allowed.

In most cases, if your landlord is trying to complete a short sale, the foreclosure proceedings will be delayed. It is rare for a short sale to be approved in less than 60 days and most will take several months to complete. As long as you continue to pay rent and live up to the terms of your lease, you will be entitled to the protections of the Protection of Tenants at Foreclosure law.

These comments are not meant to be legal advice and you would be wise to consult an attorney.

Good Luck!

Your landlord needs your permission to place a lockbox on the property and show the home. I recommend contacting a real estate attorney knowledgable in rental law or your local Tenant's Association office for any recourse you may have. Ask about the validity of the lease under the circumstances and if you have just cause to break the lease without any penalties. After speaking with the attorney or Association, follow through on their advice. If needed, start a search for a new home, or if you are happy where your are, work out a deal with your landlord for reduced rent or change the terms to month to month so that you are not caught if the house sells or gets foreclosed completely.

Are you in a position to purchase the house? That may be an alternative as well.

Good luck.

If she does list the home, she is probably just "going through the motions" of trying to sell it. It is very hard to sell a tenant occupied short sale. Especially when the tenant has been misled by a dishonest landlady.

From your accusation of her fraudulent intent, I infer that she did not have the financial hardship suddenly develop between the day she rented to you and the default.

Investigate your tenants rights and then enforce them. By the way, I am sorta talking against my own kind, since I am a landlord. However I would not pull a mean trick on a tenant like she pulled on you.

The simple answer is that it depends on your rental agreement. Some agreements do have stipulations regarding sales. What was her answer when you told her she defrauded you? A couple things I would ask you right away-Is there a security deposit? How much? There are a lot of things you can do to protect yourself and you could probably negotiate a better rental rate prior to sale. If it does go back to the bank, you could benefit from "cash for keys". I do have to be careful what kind of advice I give with this type of situation in this particular forum... there are quite a few options.

She absolutely needs to notify you. Is it being listed as a short sale? If so there might be an opportunity on your behalf for a purchase. Also contact a real estate attorney that give your legal rights.