I was under the impression that the bank already owns the home.
Whether or not you choose to pay your rent is up to you. Does it say somewhere in your lease that the owner is obligated to pay the mortgage?
I am not an attorney by any means so if your lawyer believes that you have a case then so be it. Once the property is returned to the lender then I am sure that between your lawyer and the lenders lawyer it will all get figured out.
In no way does it change my views on squatting whatsoever. Nor does it matter to me if there is a victimless crime or not.