You should absolutely live in your property until the foreclosure goes through ( and even after the actual sale date, most banks give you 30-60 days to move out). Foreclosures can take months and years, and instead of living rent free in your home, you're living somewhere else. From the motion that is filed to the actualy foreclosure it can take 1 year. Even from the date that the judge grants the foreclosure to the bank, it can be 4 months ( depending on county) until the sale date. If you show up at each hearing and ask the judge to extend the foreclosure since you're working on a modification, they should extend it even more.
I'm sorry there was noone to tell you this, but you should live in your hom until you know the house is sold at the foreclosure auction.
Faith Home Loans