"On May 20th of this year, the President signed the "Protecting Tenants at Foreclosure Act of 2009" which provides that leases would survive a foreclosure. Which means the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days' notice before having to move out.
An exception was included for the buyer who intends to live on the property. The buyer may terminate a lease with 90 days' notice. Importantly, the law provides that any state legislation that is more generous to tenants will not be preempted by the federal law. These protections apply to Section 8 tenants also.
Change of ownership does not justify a termination of lease, the fact that the change occurred through foreclosure, will not justify a termination of the lease."
As for not paying rent - that's not a good idea. It can very well create problems for you down the road.
Are you in surprise Arizona?
If so, there should have been documentation provided to you by the landlord describing the conditions of your lease.
also, a notice of foreclosure on the home means you need to move out as the bank will evict you anyway. So, not knowing the terms or conditions of course, but based on what you are telling me I would start looking for another place to rent.
There are a couple more things I might be able to suggest, but that would require direct contact and you would need to live here in Arizona for me to be able to properly direct you.
Here is my contact information,
My name is Andre Shambley and I'm a licensed Realtor with The Keyes Company in Miami, FL. Please call me to discuss your current situation more in depth.
Office: 305-931-8920 ext 245
"Given the degree of exposure I can provide, if I can't sell your home...no one can!"
2822 NE 187 Street
Aventura, FL 33180
Interested in condos, visit me at: http://www.Keyes.com/Andre.Shambley
Want to refinance your home and lock in a fixed rate while rates are low, visit: http://www.JShambley.ApexLending.com
You should continue to pay rent so that you are not in breach of the lease agreement. The notice of trustee sale is typically issued 90 days prior to the trustee sales date. The landlord has up to the day of the trustee sale to reinstate the deed of trust by paying what is owed including and penalties and trustee fees.
Regarding an eviction; if the trustee sale takes place, regardless of who becomes the new owner, at that time you will have to leave. Otherwise a forceable detainer can be issued against you.
I would talk with whoever is the point of contact for the landlord and find out how secure your deposits are. If the landlord is foreclosed on, you may have a difficult time recovering your deposits when you vacate.
Again, please consult with a real estate attorney for legal advice concerning you situation.