I'm sorry you have to deal with this. Your agreement to pay your rent is between you and the landlord. The owner's agreement to pay his mortgage is between him and the bank. Two separate agreements, yes, you are obligated under the terms of your lease to pay your rent. I strongly recommend that you also keep records of all of your rent payments and photocopies. Just to make sure you are completely covered. If you are in a current lease, I recommend finding another rental or purchase a property. If you have issues receiving your deposit, youâ€™re entitled to file in small-claims court to get your deposit back if the owner doesn't return it or forward it to the foreclosing lender. Tenants are allowed, with written notice to their landlord, to apply their security deposit to the rent once they become aware the property is in foreclosure.I advise you to speak with a real estate attorney if you have questions about your legal obligations.
Real Estate Consultant
810 W. Washington Street
San Diego, CA 92103
Pacific Sotheby's International Realty
When you're on a lease and it runs out, by staying in the property, you're agreeing to continue the same terms on a month-to-month tenancy. By "the house is going into default," in September, did you mean it was being sold at auction on that date? As a renter, you have rights and responsibilities, as will the new owner, whether it be the highest bidder or the bank. You'll need to keep paying rent as usual or you could be sued for it by the new owner. But, I strongly advise that you get legal advice on handling the security deposit, just to be safe. The important thing is to do what's right, even if you feel others aren't.
Good luck to you!
Cory La Scala, REALTOR
Keller Williams Realty