I tell you what I do. I would change the locks that way they can’t gain access to the property.

He’s making it sound as though he is doing you a favor… That’s the funny part. If the house has gone to auction, that means the bank has taken possession of the home, and for all legal purposes- the bank is now the owner. So technically, he doesn’t own the appliances. You may want to try contacting his bank to see what the status is of the home. Most likely the bank will be evicting you sooner than later. Although, you get to live rent free, is it worth not knowing when and what will happen?

Changing the locks isn’t a bad idea. (considering your landlord lives out of state, and technically doesn’t own it anymore.) I would email him back saying sorry, I’m not interested in buying the appliances. Most likely he doesn’t have a buyer– it sounds more like a set-up to get you to buy the appliances from him. Try calling the bank, but act as an interested buyer, just to get an idea of what is going on. Tell them that you saw the home and the owner mentioned that it was being foreclosed on. Then ask them what the process is to buy the home: How long will it take to close?, What if there are renters living in the home? Get creative to discover what is really going on with the home. I would find out about time-frames and how they handle removing the renter.

This exact thing happened to me this month. I contacted a tenants rights organization in California called Tenants Together. http://www.tenantstogether.org/ I was advised of the following:

a) I have every right to continued use of the appliances as they were included in my lease. The lease was breeched by the LANDLORD, not by me, when he allowed the property to go into foreclosure.
b) The bank now owns the property, the ceiling fans, the light fixtures, the appliances etc. so those things are now the bank’s property, not the former landlords. It is not my intent to “steal” my landlord’s appliances…in fact I told the rep from Tenants Together that I actually wanted to give the guy his appliances back rather than let the bank take them. She advised me to not get in the middle of that, as the bank could then hold me personally liable.
c) I was advised that the former landlord could attempt to take me to small claims court, but I also know from speaking with many people in the industry (including friends who have several properties they rent out) that the court almost ALWAYS sides with the tenant.

Additionally, since you may potentially BUY this property, as I may also buy mine, you want those appliances included at the time of sale. Hope this helps.