Legal Question in Real Estate Law in Michigan

The mortgage company wants to move forward with the foreclosure, and is asking the bankruptcy court for permission to do this. Unless the lender is successful, and is able to foreclose on the loan before 8 months is up, this will have no effect on your lease.

If the lender completes a foreclosure before 8 months, you will be given short notice to vacate the premises. Stay on top of the the foreclosure process, and be prepared to move. In the meanwhile, find out the name of the bank in which your landlord has your damage/security deposit. Check to be sure that it's actually there. He/she is likely to not have any money, so you may need to negotiate your current rent that is due, as paid, by the deposit that he/she should have in an account.

You should also renegotiate the lease to provide that you pay your rent in arrears, or on a weekly basis, since you are now living with the uncertainty of the foreclosing bank's interest and rights that could come quite suddenly, in the event that the landlord cuts a deal with the lender.