This very thing happened to us while our deadbeat landlords in Carson were trying to dump the place for which they grossly overpaid. I found the listing for our house while searching Redfin after we got a notice from a loan workout ambulance chaser. I figured something was up, so I looked for our house. Sure enough, there it was, listed as a short sale. The listing said “Don’t disturb tenants, street view only”. The single picture was a drive by, through the window of a car. You could see the door frame of the car in the picture! I know the picture had been recent, as the flower pots I put on the front porch with the roses in them were present, and in full bloom. I called the number on the listing and what told what a great investment opportunity it was. Got a good deal of silence when I informed the realtor I was the tenant occupant.
The listing was begun in August, we got the first mortgage investigator at the door in November. As some Piggs may recall, I was extremely worried about being tossed out on my ass a few months before being transferred to Bethesda.
I just checked the property a few weeks ago, the trustee sale was back in October. Somebody bought it for $425,000, the “investors” who bought it in May 2007 paid $709,000.