I like your original deal and if he has always been a nice guy, he will likely continue that streak. He’s been honest, be honest back. He hangs onto your security deposit and you get two or three months free rent, which after the moving expenses is kind of a wash. Was there a lease? If there is one then he may be even more cool about it because he is breaking it. If you are worried about references, printout the public infor on the NOD and NOT so that you can prove to a future landlord what happened. You could also find out who the bank is and once the forclosure process gets going contact them and ask if you can continue renting from them at a reduced rate since they will be selling it (which could take months). I’ve never seen this but if I were the bank I would rather sell a house with a renter that keeps the landscaping up as opposed to a brown lawn special.
