The tenant is required to pay rent regardless of a foreclosure status, after all, they are still living in the property. To find out if the house is in foreclosure, you can check web sites like http://www.PropertyShark.com, http://www.RealtyTrac.com or you may even be able to find out by simply "Googling" the address.
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Sounds like your friend needs to move...foreclosure or no foreclosure. $1,200 isn't much to save a house - sounds shady.
Home foreclosed - check county tax records.
Tenants continue to pay - governed by the terms of the lease
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors