Does a Short Sale Take Precedence Over Foreclosure

[iridius]

My question involves a mortgage in the state of: WA
My question involves tenant rights in: Seattle, WA

On June 19, 2012, we received a notice taped to our front door that the house we rent has entered into the foreclosure process. The notice, from the successor trustee, indicated the sale of the house would occur on September 21, 2012, at auction. We are aware of our rights to stay 90 days after the sale of the house, along with our responsibility to pay rent up until the sale of the house (and possibly with the new owner should they decide to rent to us).

The conflict came when we we contacted our landlord and asked them to adjust our rent (this question is not related to the rent). In their response, on June 24th, they indicated that they had already sold the house in short sale and were waiting lender approval, which would take 60 to 90 days.

Which takes precedence? Clearly, the short sale is dependent on lender approval, so if the bank says no, then I assume things proceed with the auction. The landlord never notified us they had made the short sale. Is there a requirement they notify us?

Thank you in advance for any assistance you can offer.

[Mr. Knowitall]

If the lender chooses to forbear on the foreclosure to see if a short sale succeeds, the lender can do that.

[iridius]

Is there any requirement to notify the tenants if the bank chooses to allow the short sale to proceed?

[Mr. Knowitall]

A sale wouldn't affect the tenancy.