Hello Ashley. Our organization has programs which are designed to help renters with leases in homes that are in foreclosure. We have worked very hard to alert tenants that they should monitor the mortgage payments of their landlord by registering in our Tenant Foreclosure Alert Program. To receive more information about this program please click the link here, http://www.foreclosurecourt.org/foreclosureprotection.html
Since the property is already in default you will need to monitor the process to determine if the Notice of Default is filed and progresses to a sale. This is normally determined by following the process at the county clerks office or registering in the Foreclosure Court Program above. The Lender is not allowed to discuss the borrowers mortgage file therefore it may be hard to receive this information directly from the lender. At this stage the account will be transferred to a trustee or auctioneer who will then process the foreclosure sale. Since you were contacted by the bank this is an indication that the Notice of Default may not have been filed because the file is still with the bank and is in the early stages. Once a Notice of Default is filed the filed will be transferred to a Trustee, Sheriff, or Auctioneer and all correspondence will be from that office.
As advised by another person in this thread you should discuss the matter with your landlord but do not expect them to offer you any factual information beyond that they are resolving the matter and not to worry. This is typical because they are fearful you will stop rental payments.
The Protecting Tenant Act of 2009 will offer you some protection if the property is foreclosed. You can review the law here, http://www.foreclosurecourt.org/Foreclosure_Court_Protecting_Tenants_at_Foreclosure_Act.pdf
But you should note that you may have additional rights as tenants as per state law. Therefore, you should review the amended laws in your STATE in relation to the rights of tenants in foreclosure properties. Some states have passed laws which allows the tenant to terminate the lease once the property is in foreclosure and apply the rental security towards future rents. Federal laws do not allow a tenant to revoke a lease if the property is in Default. Its very important that you learn about the laws on a federal and state level.
If you would like additional information about the foreclosure laws in your state. click the link and select your state, http://www.foreclosurecourt.org/ForeclosureLaws.html
You can also receive additional information here, http://www.foreclosurecourt.org/TenantRightsInForeclosure.html... more