I rent in Carson, which is probably one of the areas you’re considering. Your scenario is something I worried about when I rented my current place. They bought it for $700,000 just before we moved in. Homes in the community 1 year later are now selling in mid to high 500’s. I know they are still current on the mortgage as the bill comes to us (owner occupied financing anyone?). We would probably know the insant a NOD was filed. I’m at the point now where I don’t care, as we’ll be moving next spring, and a foreclosure would take at least that long from NOD to NOT. I figure they must have a teaser on the place, since the mortgage is $570K, and no way my rent covers that.

I wish you the best of luck, I think this area has a lot of specuvestor amatuer Donald Trump wannabe’s, and caution is probably a good idea.