No, you won't be allowed to rent the home. You will need to make other arrangements until the bank gets all of their paperwork done. Your best bet is an extension on your current lease. If not you will need to put your possessions in storage and find a temporary rental for a couple of months. This is not an ideal situation; but not unusual. There are places like the Breakers, that are cozy and comfortable and geared for your situation. Their are other nice motels and hotels that have good temporary accomodations. This especially tough for you being pregnant. But the banks have no concern for your personal wellbeing, it is all about the money with them. Good success with your purchase from here.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Wish you the very best with your pregnancy and in locking in housing!!!
CHERRY CREEK PROPERTIES, LLC
If the seller is willing to move and rent the house to you, you can certainly do that. You would rent from the seller, not the bank. However, there is NO guarantee the seller's lender(s) is going to approve the short sale so if they don't, you will need to move again if the seller decides to move back into the house or the lender(s) forecloses.
If you don't want to talk to a lawyer. Can you get your lease extended? If you have been good tenants the landlord will probably let you. Do this tomorrow before he has it rented out. If this didn't work offer more rent money and make your lease month to month.