Envoy Mortgage, Ltd.
NMLS# 947738 / AZ# 0921717
The property management company is correct. The homeowner has until the trustee sale auction starts to pay what they owe to their lender to get their loan reinstated. Therefore that would then cancel the trustee sale. If you would stop paying rent, that could make it more difficult for the homeowner to reinstate their loan. Additionally, you may be contractually bound to pay your rent and still be required to abide by your lease terms, otherwise the management company may exercise their right to evict you for non- payment of rent.
There are also laws to protect tenants in foreclosure situations.