I think you should consult an attorney skilled in foreclosure issues.
Particularly one with a history of representing tenants.
Here’s why:
1. It may be that your lease will survive this pre-foreclosure. If this were to occur, you would want to be able to stay in your house under your present lease terms.
2. If the property does proceed to foreclosure on the courthouse steps, your lease will probably be extinguished by the foreclosure action. After all, all junior liens are also extinguished so even if you went to the trouble of recording your lease at the county courthouse, it’s probably toast after a foreclosure.
3. On the other hand, if your landlord has stopped making his mortgage payments, he has almost certainly defaulted on your lease as well. Why should you pay him ANY rent at all? He’s whining about throwing good money after bad, listen to him.
4. In the short run, I would RUN to the courthouse, find out who is holding the mortgage paper on this property, and QUICKLY ascertain how much is owed. Could it be that you would be interested in assuming the loan?
5. Is any mortgage fraud involved here? If he financed the home claiming it would be “owner occupied” and then turned around and rented it out, I’d be very skeptical indeed.
6. Under no circumstances would I give my rent money directly to a landlord in default on the primary mortgage. Think about an escrow account. An attorney can assist.
