I would ask the realtor selling the house and see if they will put you in touch with the buyer's agent.
Maybe the new buyer wants to rent it to you as well?
So maybe you will not have to move out.
If the closing date is July 7th, then it could be you have to get out that day, or shortly thereafter.
Have you asked the seller about what will happen with your deposit?
Let me know if you need help looking for a new place to rent.
You can search homes for rent on the link below.
Keller Williams Realty
Contact my office I specialize in Dallas home rentals I need to know more about what your specifications are
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Foreclosures terminate claims to the property that are junior to the lien being foreclosed. This means if a second mortgage is not paid, the lender steps in and forecloses, then the property is cleared of all mechanics' liens and other similar claims, but the first mortgage and any tax liens remain in place. Similarly, if the first mortgage is foreclosed, only the tax liens run with the land.
Note that the old owner can't stay there and renters can't, either. They could be removed in a forcible detainer suit after foreclosure. The lease is a junior claim.
A short sale is a normal sale between old owner and new buyer. The action of quenching junior liens of foreclosure does not happen. The lender is not entirely happy because he winds up "short" on the payoff, and typically the second lien is even "shorter". However, claims are not quenched by a short sale. Banks usually document their release of lien and forgiveness, if any. Often they issue a non-cash "1099" to the old owner for the difference between the balance and what was received, and/or pursue the old owner for the deficiency. The newer Federal law helps the old owner somewhat. Junior liens keep on running, including mechanics and so on. The title company will report what liens and other claims don't get cleared off in the short sale before closing.
But, the lease, which does run with the land, survives the short sale. The new owner can ask the tenant to move on, but I do not believe there is any power to force him out, except a violation of the existing lease. That lease is then conveyed to the new owner, who is fully responsible for all its provisions.
If the old owner skipped with the security deposit, new owner, you'd better look out - you're on the hook for it. If the tenant did not pay rent because the short sale was pending, he's outta there. He breached the lease. Of course a court has to find all this to be true = there is no non-judicial eviction. And an attorney is a good investment. He'll tell you about the law and the particulars in this case. We can't advise you.
BEST OF LUCK.