Questions on Renter Woes...?

After my wife and I came home from Church this past Sunday we were greeted with a "Notice of Auction" on the house that we were "Renting." The notice stated the house would be sold in November 2008. We signed a 6 month lease just short of the deadline however the landlord who we thought was the owner is pushing for a year lease; how can this be? I would think there is no way we could stay for a year if the house is being auctioned off because their is a $130K lien. My wife still thinks the owner is honest however I find it to be very shady as she prefer to be paid in cash over money order or check. I believe the owner had to know the house was going to be repossed. Are there any laws against this? I say this because if it was not for that notice on our door we would of ended up homeless on the street.