Last week a man showed up at my door, saying the house was foreclosed and I needed to get in contact with my landlord. No paper work was given, my fiancé was home alone and did not open door or reciprocate conversation.I talked to my landlord and he says loan modification.Further inquiry with bank, $8,000 dollars behind, last mortgage payment April,2010. Rent is due November 1, 2010(tomorrow). Do I pay this months rent,and hope that he gives me my deposit 10 days after I move? I told him to use my deposit as last months rent, landlord says lease (neither one of us can find) agreement says deposit is returned 10 days after I move out. I feel, I know he will not return my deposit. The house is in better condition than when I moved in, The landlord has made know repairs in the 3years we've been here. I did the repairs. What should I do?

First are you in a lease ?

Second, as long as he owns the house, you owe him the rent, so if this is on a month to month rental, have you now given him notice to move ?

Next of course a deposit can not just be used for rent, unless of course both of you agree ( and it should be in writing)

He may get a mod, it also can take often up to a year for a bank to actually foreclose.
So to the day of the foreclosure sale, you owe him rent.

And yes, while you need to worry about your deposit, sadly it is common in a foreclosure that you will lose it, since he will not have the money to pay it back.
If you can work out a deal to apply it to rent great, but he does not have to

You do realize that when the foreclosing bank obtains "possession", that doesn't put you out on the street, right?