You should be protected under the "Renters in Forclosure Act".
Do you have a signed lease?
If so, when was the lease signed and how long is the term?
Example, if your lease is a two year lease, signed before the foreclosure was initiated you should be able to stay and fulfull your lease As Long as you remain current on your payments and dont break your lease.
Typically, the home owners home is way underwater and they may be trying to modify. As of June 2012 hamp modificaitons now cover rental properties and the home owner may be able to get a principal reduction to 115% of fair market vaue. I could understand if this is what they are trying to do.
Most likely the rent does not cover the full mortgage payment and the home owner is facing a financial hardship.
The problem is most home owners are under the belief they have to be late in order to get a modification which is not true.
You can go online and check the county recorders site for notices recorded against the home.