Yepp,
When a property is foreclosed on there are tenants rights as well as the homeowner having rights for time spans they can legaly occupy a residence after foreclosure based on who owns the mortgage.
In some cases the mortgage company will allow the tenant or homeowner foreclosed on to occupy the residence until transfered to a new owner. Must pay a prevailing rental rate in most cases.
Search S.896 and you will find one of them.

Thanks JAP! The problem Denninger is addressing is that to foreclose the bank must have wet ink documents on file and be able to produce them for the court in order to show legal ownership of the mortgage. These documents have been destroyed in many cases, therefore they are in violation of the law requiring wet ink documents. By using MERS as a holding entity for mortgage packaging and conveyance banks have also denied counties of recording revenues due to mortgages being conveyed several times but not being duly recorded. All that coupled with application documents having been destroyed and knowingly packaging mortgages which did not meet minimum requirements to have been issued, there is a significant problem with actual fraud. This is a mess which may take years to unwind.