Legally the home belongs to the owner, even if they are in default, and generally they can do with it as they please, including renting it out. Some States have enacted protections for tenants and there are even Federal laws now that also provide some level of protection. Mostly, though, the protection is from the bank trying to evict tenants for no reason.
Check on line to see if your State has any regulations in this regard, you could try your State office of Community Affairs. Also consult with an attorney.... more
I can't give you great advice on this one unfortunately but I did want to help out where I can. I'm actually from Fort Knox originally. I was a "Military Brat". Anyway, from what I have seen the Midwest has not been hurt nearly as bad as other areas. But since every market is different you should sit down with a local REALTORÂ® in your area to get information specific to your home.
As a general rule of thumb though if you plan to live in your next residence for less than three years you might be better off renting, but if you plan to stay longer than three years you should consider owning so you are not throwing away all that money. In my market sale prices over all are down about 9% but itâ€™s actually up in certain neighborhoods and down less in other areas.
Real estate is not like the stock market. Regardless of what the experts say your home is worth, only you determine what you can sell your home for and only the buyer determines what they are willing to pay for your home. So trying to time your move around â€œthe marketâ€ is not always practical or advantageous.