I'm under contract with my landlords as a tenant with the option of my $8000 deposit and half of all our rent for the leasing year going toward the down payment of the house if we decide to buy. As of a week ago we were served the summons that the landlord is in the process of foreclosing.

1. With the summons, does that release me of my responsibility to pay rent and stay in the property?

2. What are my chances of getting my due deposit money back if I hire an attorney?

3. I've been informed that if we wanted to make an offer on the house, we should make it at 6/10ths on the dollar value that is owed on the house. Is that true?

4. And does that same idea apply to the asking price on a separate property that is in a Short Sale status that we may be looking to acquire?

I'm sorry about the long post, but I need answers pretty bad. Don't want to be ill informed. Thank you in advance!

1. No you are still legally liable to honor your contract with him, if you do not, he will find you in defaut and you will lose all of your investment

2. OK he is losing the home for not paying the payments, do you think he has 8000 in the bank if he is not paying the payment

3. well a offer is a offer, it will depend on what the loan about is, if this is under what he owes on it, this would be a short sale offer and up to the bank

4. I have submitted about 10 short sale offers this year, some only 1000 less than the loan price I have had every one turned down, but you may have better luck, many will prefer to foreclose and then sell the house directly for some reason.

** best answer hire an local attorney, start action in court against the landlord, the attorney will set up an escrow account that your rent is put into pending outcome of the action. If you like the home, make a offer for an amount you believe you can get a loan for.