[quote=captcha][quote=urbanrealtor]
Also, bear in mind that if she gets foreclosed on while you live there, then worst case, you get 90 days free rent.
[/quote]

I believe it is the greater of 90 days or the end of the current lease, unless the property is sold to a buyer who intends to use it as primary residence, in which case it’s 90 days (no ‘end of the lease’ option). It theory it is not free – the new owner has the right to collect the rent and obligation to maintain the property.[/quote]

While there are specific exceptions for the rare owner-occupier-buyer-at-trustee-auction, generally it goes as follows:

-90 Days
90 days notice to quit for tenants who have no rental agreement with the landlord. Changing landlords voids the original rental contract (barring some assignee and quitclaim arrangement in a trust deed). Not having a current contract means that there is no provision for compensation (hence the “free-rent”). It isn’t literally free rent but just a long notice to quit with no compensation arrangement (but it works out the same).

Or

-Remainder of lease.
This functions as an effective novation of the now defunct rental agreement under substantially similar terms and a new landlord. This, in theory, would require compensation on the old terms until the end of the rental contract. I say “in theory” because I have never seen a tenant take this when the landlord is dangling several months of free rent and/or cash in front of them.

The owner occupying bidder is an incredible rare animal. I have not heard of one locally though I imagine they could exist.

In reality, most banks who are not tight for money will just offer you 3-4 months rent cost in cash and simultaneously give you a 90-day notice to quit.