Your agreement is with the owner/landlord. Chances are they will look to you to pay them as if nothing has happened. If you don't pay, and as long as they are the owner of record, they can evict you. Regarding the foreclosure papers you received from the bank, did they mention a sheriffs sale date? Obviously the owner has not been paying the mortgage with the rent you have been paying to them. That is wrong and it puts you in a bad situation. As far as I underdstand the foreclosure process, as long as the home is occupied, the owner will have a longer processing time to the sheriffs sale (usually 6 months if occupied). It would be to the owners advantage to sell the home or have the home occupied with renters paying or even not paying. Hope that helps.
If the owner is not paying the mtg with your rent, you could escrow it, otherwise my best advice
is to be quickly looking for another place to live.
Once the foreclosure sale is in process, one day the Sheriffs Dept will show up on your doorstep and throw all your stuff to the curb. Because YOU ARE NOT the owner, you may not know when this is going to happen. I've had to do this before, and if there are children involved, it is not fun ;(
If I were you, I'd find another place to move asap. Not sure where you are, but if you want some help, let me know and I'll put you in touch with someone that can help you, Whatever you do, do NOT wait - as the mtg company does not have to inform you of what is going on. You may just show up from work one day and see all your stuff at the end of the driveway and the locks changed. .
Yes, and the landlord can file eviction papers if you do not pay that will stay on your public records.
I believe as long as you are paying "market rents" you will be able to stay until your lease expires--even if the lender forecloses and takes ownership.
Go to the clerk's office for the county you live in and check to see what stage the foreclosure is in. If it is just a "lis pendens" this is the preliminary foreclosure filing. Ask your Broker and maybe they can give you some help with understanding the foreclosure process.
Also Obama Signs New Federal Law Protecting Renters after Foreclosure. Please note the word AFTER.
For information. For what ever situation that leads to the foreclosure process, banks will stop accepting payments from property owners; so its not necessarily the owner who stops making their payments.
Perhaps, your rental payment will help them keep their property when they get to the round table of negociations.