It does not usually happen. But it al depends on the the investor and the insurer. FHA loans use to allow owners to rent if they met certain requirements if certain paper work was filed out. If it is not a FHA loan, other investor FNMA/FHLMC earlier this year allowed mortgagors to rent the houses. However, I have not heard about this recently since the government got involved with the tarp money.

I would call your bank and see what they say. However, I would also start looking for another place to live. If your place went to foreclosure, the notice of eviction should have already been served, so time is not on your side. Most likely you will have to move.