If a tenant is still living in the landlords property then the tenant should continue to pay rent even if the property is in pre-foreclosure. The landlord still owns the property and the tenant has an agreement to pay rent. The tenant has no right to live in the property for free even though the property is in pre-foreclosure. There is always a chance that the bank and the landlord will come to some agreement. I own property and spoke to a realtor about this subject and the tenant needs to continue to pay rent.