The Protecting Tenants At Foreclosure Act of 2009 went into effect on May 20, 2009, offering some protection, and at least a little time, for those renters who find themselves drawn into foreclosure despite paying their rent. In short, the act allows such tenants to stay in their rental homes for 90 days following foreclosure, at the very least, and allows some tenants to stay until the end of the lease term.
Of course, the act won’t protect you if you’ve not rented at arms length:
One important point: leases have to be “bona fide” in order for the tenant to qualify for this protection. If you’re living in the house for a dollar a month because your cousin really likes you (or because he lost a bet), you’re probably not protected by this Act.
Oh, and you still have to pay the rent.