Two points: (1) There's still a valid lease in effect. (2) You're still receiving the benefit of renting. That is, you've got a place you're living.
Another person suggested making an offer on the property. That's a good suggestion so long as you can get it at an affordable price. I suspect his monthly mortgage payment and condo fee are far higher than the rent you're paying. So, just to make up some numbers, you might be paying $1,500 a month in rent, but he might actually be paying $2,500 a month in mortgage and condo fees. Depending on what monthly payment you'd be comfortable with, you'd have to acquire the condo for far less than he paid. That's the whole idea of a short sale, of course. But you'd have to really calculate the number to make sure you could afford it.
One difficulty I've heard of is that sometimes the condo will restrict access to certain amenities to only those units (whether owners or renters) who are current on their condo payments. So you might want to be alert to that.
A short sale is just an ordinary, everyday sale except that it is contingent on the lender's approval. That is, the lender (because it'll be taking a loss) must approve the sale for an amount less than it is owed. A short sale does adversely affect the seller's credit, but it's entirely different than a foreclosure (in which the bank actually becomes the owner of the property).
Hope that helps.
A notice of default triggers the foreclosure clock. Once a notice of default is filed, the owner has 35 days to cure the default until penalties and extra fees start to pile on. The owner could still stop the foreclosure in a few ways: negotiate with the lender(s) for a loan modification, file bankruptcy, or pay the past due monies. If the owner continues to do nothing or is unsuccessful in getting a loan mod, the notice of sale is posted 21 days prior to the auction date.
As a tenant, if the property is foreclosed on or sold at auction, you do have rights.
Let me know if I can assist you in determining your options.
Rosen & Company West
So I am safe to assume then that a short sale is not looked at as a default? or to be looked at the same as a foreclosure? We gave him a nice security deposit that I am sure we will not see again as well.
I am just disappointed to hear the news as my fiance and I love the place. I just don't want to pay someone if they are not keeping up there end of the deal. We are always on time and never late on a payment to him. Would you recommend just washing our hands of it and moving out? or staying and milking the system as long as we can once the property is actually foreclosed on?