Tenancy in a Foreclosure-- what are probable scenarios?

[Patsy Waldron]

Hello all!

I have a question for the pros who deal with foreclosures (the process itself, selling them, etc). I have found a house that is in foreclosure that is being advertised for rent. This is in a city with a very hot market for both sales and rentals-- everything gets multiple bids/ rental applications within a day! So my family is moving to this city and looking for a place to rent for a year or more while we get to know the area and decide where we want to buy (and pray very hard that the market will cool down!). This house for rent popped up that was several hundred dollars below market rent. A 4/3/3 house in a stellar neighborhood renting for the price of a 3/2/2... What's going on? Well, a call to the property manager revealed that what's going on is that the house is in foreclosure. The current owner is renting it out while going through the foreclosure process. I guess that's why they are asking below market rent- make money from it while they can!

Anyway- the property manager was honest about the fact that, after the foreclosure, we might be asked to leave with 30 day notice. Or that we can leave with a 30-day notice. Not what we want, since we would prefer to stay for the whole year. But it got me thinking....

1. If we rent this house, is there any possibility that we could buy it before the foreclosure goes through or once the process is over? Would we, as tenants already in the house, be given any kind of special consideration or "first dibs" in buying the house when the bank is ready to sell it? [ Follow-up: I realize that this is unlikely, since the market is so hot... But is there any chance that we could get this house for less than market value?]  Or will they ask us to leave as soon as the foreclosure is complete? 

2. How long do foreclosures take? This one appears quite complicated and has been dragging on since 2016. [Yes, I looked up the foreclosure lawsuit. :)]  We won't rent it if we are likely to be thrown out when the foreclosure goes through a month later, but we would consider taking a chance if we could live there for a whole year! Especially if we got a chance at buying the house at a discounted price.

Some details: Similar houses in the immediate neighborhood have sold for $295,000- $315,000 in the last year, mostly in the second half of 2017. The principal owed on the house currently is $195,000ish.

Any answers much appreciated!!