For example, what if the house gets foreclosed on? Will I get kicked out and lose the remaining rent I paid?
Well, you will have a contract that specifies that you want your money back if you’re evicted for any reason (including fire, flood, or foreclosure). If he does not cooperate, you can threaten to take him to the court. Assuming he still has your money.
There are a few things you should do to protect yourself. Avoid renting houses bought in 2005-2006. Before moving in, check if NOD has been filed against the house. Don’t pay more than six months’ rent at once. If NOD does get filed, switch to month-to-month payments. Once your landlord defaults on his mortgage, you have four months or more until the foreclosure auction. Worst case scenario, you get a notice of default the day after you paid 6 month rent, you will lose 2 months.
