Check out your landlord carefully before going forward.
More and more I see this. The landlord gets a tenant knowing a head of time that the property is nearing foreclosure but does NOT reveal this fact to the tenant. The tenant moves in, and postings start appearing in their mail or at their front door about the property being in foreclosure. The landord pockets the rent money and does not use this money as it is intended -- that being -- paying the mortgage. The tenant is notified that they have a VERY short period to vacate the premises. The tenant is stuck finding alternative arrangements immediately. It's amazing that landlords feel free to grill the tenant about important issues (AS THEY SHOULD), but the Tenant doesn't grill the landlords in return. Renters, ask questions. Due diligence is a two-way street.
Thanks for listening and please -- pass the word.
Besides performing your own due diligence on the seller and the property, another thing that you or the seller could to help protect both of your interests is to establish an escrow servicing account (ESA) to handle processing your payments. The ESA agent accept your payments, pay the rent/mortgage, and pay the seller the remainder of the proceeds. This way you ensure that the underlying mortgage will get paid. This also protects the seller too, because the ESA company will notify him/her if you're late or simply haven't paid.