I live in southern California and I started renting my house in July of last year. I recently received a letter in the mail that was addressed to the previous owner of the house. I was admittedly nosy and held the letter up to the light. On it I could make out that the bank was going to start foreclosure proceedings. I called my landlord the next day to ask hew what was going on, and if I should be concerned. She divulged to me that she had purchased the house and assumed the note on the property with never re-financing the house in her name and she was unable to continue making the payments and unfortunately she was going to have to let the house go to foreclosure.

My question is several parts:
How long will the process take before I have to move?
Do I continue making rent payments?
Will I receive my deposit back?
Is my Lease still valid? And am I obligated to stay throughout the process?
Should I contact the Lender?
Was my landlord legally able to enter a lease agreement with me?

Why not see if you can take over the payments from her on some contract ?

1. it can take from a couple months to 8 or 9 months, it depends on how long they will let them get behind before they actually do something

2. legally you are suppose to pay rent, unless you ask the landlord and get permissions.

a. now a issue may be, who actually owns the house, at the court house whose name is on the deed? It could be legally your landlord is not even the owner

3. let me see they have no money, can' pay the mortgage, do you think they will ever pay you, short of you taking them to court

And yes, if the landlord had a legal right to rent to you, the lease is valid till the day they foreclose

Contact the lender?? Why

This is the real question, what type of ownership do they have, do they have a contract for deed ? Dothey have it deeded into their name ?
This is something I would want to see.