Without congressional intervention, the already astronomical number of foreclosures in the USA is going to increase.  This is a predictable and unavoidable consequence of enabling the continuation of unsound lending practices without meaningful regulation and protection of homeowners and renters.  

Foreclosures in Montana are increasing rapidly.  From about 30-40 foreclosures in Montana per month in 2007 to 135 in August 2008 alone, it's happening.  

California, being hardest hit by the foreclosure boom, keeps good stats on this - just a few for example:  foreclosures are up over 76% in June 08 over June 07; Seriously delinquent loans (90+ days behind) are at 23.8% in CA, seriously delinquent subprime ARMS are at 32.33% - almost a third; CA loans already in foreclosure - 25% for ARMS, 17% for subprime loans; and 38% of foreclosed properties are not owner occupied, this means evicted renters, 2,500 families, 10,000 tenants presently face eviction due to foreclosure.  Montana is a much smaller market, but the trends appear in line with CA.

Being a homeowner foreclosed upon is hard enough, of course, but what if you are a renter, or a HUD Section 8 voucher holding renter, and the building or house you live in is foreclosed upon due to the landlord's inability to pay the mortgage?  And then you receive an eviction notice?  Upon trustee's sale, many new owners (banks, etc.) may immediately move to evict tenants without cause in order to milk the property and turn it over ASAP to recover losses on the default.  

If you are a renter in Montana, the first you will probably hear of this (and your subsequent eviction) is 20 days prior to the trustee's sale of the rental unit.  And then only through a posting of the notice of the trustee's sale on the property.  A foreclosing creditor only has to provide notice to tenants if the creditor has knowledge of their existence, actual knowledge that could be found at the county courthouse - and how many renters actually file notice of their rental interest in the property with the county?  You can expect that the eviction process will proceed rapidly from there, and you might be out of home in a couple of months.

These trustee sales in foreclosures in Montana occur pursuant to Montana's non-judicial foreclosure provisions at MCA section 71-1-315.  This provision requires 120 days notice to the owner of the property of the trustee's sale with a 20 day notice posted on the property.  The sheriff is there to do the dirty work - change locks on the doors, and keep the peace (I don't envy them in this responsibility).

You are not without legal protection against the unfairness inherent in this process.  You don't need a lawyer to know your rights, but legal services attorneys across the nation are developing successful strategies to oppose post-foreclosure evictions through pursuing the goals of avoiding eviction, requiring repair and maintenance of the rental unit upon its sale, and seeking money damages for clients.  These efforts are being undertaken not only to protect tenants rights, but to pursue the community goal of preventing the abandonment of properties and consequent degradation of community that follows.

Eviction of a Section 8 voucher holder can have even more serious financial consequences.  Obtaining funds sufficient to cover new security and damage deposits, moving expenses, and even finding section 8 housing opportunities (and dealing with discrimination) can impose additional hardship.  Federal law provides additional protections for section 8 renters, such as 60 days notice for post-foreclosure eviction, but don't rely on the new landlord (especially if his name is Paulson) to advise you of those rights.

Be aware of "cash for keys" offers as well.  During foreclosure, if the foreclosing entity wants to clear the unit of tenants they may offer an up-front payment for a tenant's agreement to move out quickly.  But "cash for keys" offer usually do not involve a discussion of tenants rights under landlord-tenant law.  It's up to each tenant to decide whether the cash for keys offer includes enough cash to cover their needs at the time, but to really know what's in the balance, tenants should know their rights under the law.

Finally, unscrupulous individuals (heh) are using foreclosure lists as voter-caging devices to disenfranchise homeowners and renters in foreclosure, as we speak.  It's been discussed in several important posts here recently, but your right to vote cannot be taken away by foreclosure.  You are entitled to challenge your removal from voting lists by demonstrating residency and voting provisionally.  Don't get turned away at the polls by foreclosure.

Legislative action on the federal and state level is sorely needed to address the inequities of the present foreclosure crisis.  Educate yourselves, spread the word about this issue, and support thoughtful legislative action to address the real-life "Main Street" consequences of the economic situation.

Additional Links:

MontPIRG
Montana housing authorities
Montana Legal Services Association