I currently rent a residence. My payments go through a management Co. We just got notice that the house is in foreclosure and will go to auction Jan 8, 2009 our lease is good to Feb 29, 2009. Would it be illegal to withhold my rent until I am told to leave? Do I have to give a 30 days notice to receive my security deposit back?

Up to the minute that the property actually sells at the auction or the bank actaully takes it back your current lease remains in effect. Legally, you are obligated to everything in it.

Have you spoken with the management company about the issue? And if so, what are they saying? They are still going to try to get you to pay rent (I'd imagine) because that's the only way they get paid. Whereas if you were dealing directly with the owner they may have just pretty much "given up" at this point, and may not pursue you if you didn't pay.

Some suggestions have been made of holding the rent amount in a separate account, so that if it comes down to it you have it on hand to pay. Because legally you could be evicted for non-payment. The foreclosure doesn't change that.

It's a horrible situation that tons of people are finding themselves in. Unless you're in CA, there's nothing to protect you or "buffer" your situation. You are expected to uphold the lease, then on the day of foreclosure the bank can break the lease, and although you would still be legally entitled to your deposit - good luck getting it from the owner who couldn't even pay their mortgage payment.

I feel for you. I'd try to strkie some sort of deal with the management company. Or attempt to contact the owner directly and see if you can get any info from them.