Basically this place is about to be in foreclosure... so it would be a month to month agreement.

Should I avoid this?

*Month to month lease

*30 days notice to terminate lease on landlord side (unit is in foreclosure and may be taken over by bank) Tenant will have 30 days notice to vacate
Perfect situation for someone who needs temporary housing in a great neighborhood at a great price.

As long as you don't mind moving say, next month again, I guess you could take the chance.

If the price and location are good, why not?

Find out if the mortgage the land lord has is assumable and offer to take over the payments... assuming you can afford it.
Otherwise, as progunr stated, there's no real reason not to. Just make sure you can afford the beer and pizza for your friends when you ask them to help you move again in 2 months. ;)

Nice answer regarding the beer and pizza! I laughed.

Thanks for the responses.

Try to avoid providing any security deposit. If the landlord can't pay the mortgage then they probably won't have the money to return the security when you move out.