Thanks for all the good advice. My lease had ended May 31st and the owner gave me permission to stay until June 20. In April we got notice that payments had not been made since Sept. and this has been very upsetting, i have entered into anther agreement as I am tired of the uncertaincy and dislike paying rent to someone who is using it to pay there own rent. The people are nice though. I'm expecting the sale tp be postponed but I was curious to why their lawyer is waiting until the last second to file the suit.

If the home is actually auctioned as scheduled; it will either go to the highest bidder [keep in mind they post a minimum bid amount] or the bank/Lender of record. If it IS purchased on the court house steps it then needs to be recorded at County Recorders office to be valid.

More importantly, I am concerned about you moving out of the property. The week of May 18th, President Obama signed "The Helping Families Save Their Homes Act of 2009" and it contains various new laws to address the national foreclosure crisis. Here is the portion that will directly affect your situation...

"LONGER STAY FOR TENANTS OF FORECLOSED HOMES: Effective immediately, an REO lender or buyer who acquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.

As far as not making payments of your rent---I STRONGLY encourage you to keep your lease agreement and pay your rent to the person stated in your lease regardless of the property going into foreclosure. It keeps your lease valid [otherwise you could be in default as well as your rental history and credit potentially being affected].

I would like to be an optimist here and believe that the owner is not just "out to get free rent/mtg payments". It sounds to me like he feels he was put into a "predetory" type loan and got the short end of the stick. He should have been trying to get a modification or other arrangements on his loan. It was probably not an option to him due to the property not being "owner occupied". This might be his last ditch attempt to save his house.

Lastly, if the house does go back to the bank; you will be notified by the banks assigned agent. If it went to a new buyer, than they will notify you accordingly. The key here is POSSESSION is 9/10ths of the law. You are residing there, and you have rights as a tenant. The owner is probably not aware of the new law. He is required to give you notice no matter what.

That is a question best left for an attorney to answer, but for the most part, a sale on the court house steps is legal and binding.

I'd just say as little as possible to the owner. If you were in possession of the home at the time it was sold at auction, you would be entitled to a 60 day termination. Many lenders are offering cash for keys to tenants who would move out earlier than that, and it's sometimes a very generous offer. They no longer offer cash for keys to homeowners. I wonder if your landlord is anticipating some payout to surrender possession? We can only guess, but if you are the person in possession of the property at the time it becomes the property of the bank, then the bank will contact you through their agent. You should provide no more rental payments to the previous owner.

Hello,

I worked at the auctions in Alameda county the summer of 2007 when I was in college. Once a property is sold at auction you must go to the recorders office and make it official because you have the deed. I have never herd of anyone being able to get the property back once it is sold. It is very common for properties at auction to be canceled or postponed which is up to the beneficiary. This could happen for a multiple of reasons. I hope this helps. Good luck!