The consequences of your unit going to foreclosure auction vary. Regardless if it's bought by an investor or it goes back to the bank, your lease will no longer be valid. If it's bought by an investor, he/she may allow you to stay in the unit as a renter, or they could evict you with ample notice (usually 30 days). If the property goes back to the bank, then you will be evicted with usually a 30 day notice.
You may be able to work with the owner's lender to allow you to assume the loan, if the loan is assumable. If not, and if you want to buy the unit, you may have to qualify for a loan & then buy it, assuming the owner will allow a sale.
I advise you to consult with a REALTOR and/or a real estate lawyer who can help you with this unfortunate situation. A REALTOR may be able to broker a deal between you, the seller & the bank, and the REALTOR may be able to do this without charging you any money.
If you want my assistance, I will give you the information you need to make good decisions.
HomeSmart Real Estate
It appears the note on the property is about $125,000. The bank will want to know you can pay for the note if they let you take it over. Call me and I will explain what to do. 602-284-3000
As Tammy stated, you would need to talk to the current owner now about taking over the note. Once the bank has taken the property, they will probably want you out before they are willing to work with anyone on selling it.
You will not be evicted without notice. You are given a "Eviction Notice" which typically gives you 30 days to leave the premisis.
Hope this helps.
If the property goes to Trustee Sale and is "purchased" by a bidder the property will be tranferred to the bidder by Trustees Deed. It is up to the new owner as to whether you can remain in the property or will be evicted. If the property reverts back to the Lender it is likely you will receive a notice of eviction so the Lender can list and sell the property. If possible, speak with the current owner regarding purchasing the property. This could be an easy process if it is not a short sale situation and you if can qualify for a new loan. You may find it helpful to consult with a real estate professional who can either help with the purchase or assist you finding another rental property.
I am happy to answer any questions.