Landlord received auction date

We have paid our rent on time for the last 11 months. We have a year left on our lease. We received a letter in the mail addressed to our Landlord that stated that his auction date has been set for 6/27/08 (this could easily be viewed through the window of the letter). He had informed us 2 months ago that he wanted to sell the house and we have been showing the house on short notice to anyone who wants to see it. We know that one of his properties is up for auction on April 10 ($1.5 million) and that there is currently a HOA lien on our house, and he is being sued for $82,000 by one of his contractors (viewed via public records on internet). We are unsure of what the auction date means for us? Do we continue to pay him? Do we contact the bank? How do we find out what bank to contact? Any attempt to get information from him results in our being told to "just pay the rent". We have 3 small children and don't want to be given a short notice to get out of the house by anyone! Can someone tell us what to do? Any help and direction would be greatly appreciated. Thank you for your time.

[OHlandlord]

You must continue to pay the rent as long as you live there or have a valid lease. I suggest you call the county auditor and tell them you received an auction notice of your rented unit. Ask for the mortgage company on record or ask what liens have been filed against the property. (You may also be able to see these on court records or the sheriff's site on-line.) Call the HOA and the mortgage company and inform them you are a tenant at that address so they can let you know what is going on. Ask the auditor or them who is conducting the auction: is it a private sales auction (just as if the house was still being shown by a realtor) or is it a foreclosure or court ordered auction? Contacting the company who holds the liens and who is authorizing the auction will allow them to give you the correct notices. Be aware if the house is sold at a foreclosure or court auction, this will end your lease in most places. You will likely be given notice to vacate by the new owners. If it is a private sales auction, your lease will be honored by the new owner.

Thank you for your reply. I spoke to the landlord's realtor (it has been up for short-sale for 60 days) and he had no idea that an auction date had been set. Does my landlord own the house right up until the day of the auction or does the bank become the owner before then? My biggest concern is paying the rent tomorrow and then having an eviction notice from the bank on the door 3 days later and not getting the remaining rent or my deposit back. The landlord emailed tonight saying he is thinking of filing a chapter 11 to stop the foreclosure. Just a one-line email. He is deliberately vague and I feel like my family and I are left hanging in the balance.

[OHlandlord]

The LL will remain the owner of record until after the auction. It may actually take several days after the auction for the new owner (whether it be the bank or a private individual) to become the new owner since it doesn't become official until the deed or title is isssued and recorded in their name. Until then, you must continue to pay the rent.

The auction date isn't until June so the house won't sell until then unless it is sold through the realtor. If the realtor sells the house, the lease will transfer to the new owner. If it goes to auction in June, assuming the owner doen't pay up or refinance (and remove it from the auction block), you will then get notice to vacate (usually 30 days notice) at that time. The auction date rarely ever chancges, and when it does it is usually moved back, not up. The bank won't get possesion of the house until then unless they and the owner work out a plan for them to take it back (very rare), so no eviction notice could arrive until after the auction. If he files for BK, it will take quite some time to process that and have the hearing in BK court before it would take effect. So go ahead and pay the rent.