Me and some friends have signed a 1 yr lease with our landlord and have been living in the house for over 3 months start may 20, 2007. We recently received a letter stating our landlord is obligated to put her house up for sell. Just today we had people over to look to buy the house. They mentioned they wanted to make an offer. If the house sells can we be kicked out. We live in the state of Michigan.

No, if this house is just being sold, the new buyers have to honor your lease.

If the house is being foreclosed or sold at bankruptcy then yes you will have to leave if the new owner wants you to.