Legal Question in Landlord & Tenant Law in California

Banks often promise modifications but do nothing. Once they foreclose the bank will argue that that breaks the lease and they can move you out at will; there is some support for this legal position but I am uncertain if it is correct. The problem is what it would cost you in attorney fees to argue the issue [the banks normally hire a private law firm that bills by the hour so has no real interest to resolve the case quickly.

The best thing is to go to the landlord and the the bank to see what can be worked out. The rent money should be kept in a escrow account with the right to argue that the rent should be lower as a vacent house is always more difficult to rent out or to rent at the average rate in the nieghbarhood. You also need him to put the security deposit in third party hands as if he is forced out he will disappear with the money. Get an agreement from the bank for your living there at a reduced rent, they will give you 60-90 days notice thet are selling the property, maybe take over the loan but with less of a principle balance, etc.

Good luck.