I don’t think your lease will still be valid if there is a trustee’s sale.
I know you don’t want to assume his loan – you said he is way underwater.
You may be able to lease from the bank after the foreclosure, but I haven’t seen any REO properties with tenants: they all seem to be vacant.
You may not think that this is ethical, but if the owner is not going too pay his mortgage anymore, you could tell him to keep the $2,000 security deposit, and you’re not going to pay him anymore rent. Then run to the survivalist store, stock up on weapons, ammo, and non-perishable food, and barricade yourself in the house until the SWAT team shows up next winter.
