What Happens to a Family if they are renting a home and then the landlord gets forclosed on ?

At some point in time, the family who is renting will have to find other accommodation after being given notice that the bank is taking over the house. It would be wise to start the process of looking for another place to live in the very immediate future.

The bank when it forecloses normally will evict the renter. Any lease is void at the time the foreclosure happens.