If your case was dismissed with prejudice, then the lender cannot go after you for anything. When the statute of limitations runs out, (I think it 5 years) you can sue to quite title and be free of all encumbrances on your home.
There is a good chance that you will be able to stay in your home until the end of your lease. But the lenders will put up every road block they can find, including ignoring you. You need to file something in the court file with your lease attached. By doing this, the lenders are supposed to notice you on all matters.
The deposits is something else. That is covered by landlord tenant law. He should give it back.
The problem is that he is not working. To get support you would have to go to court and prove he is not working because he will not work. I your situation, that might not be an answer that you can do because of your income. You need to contact your legal legal aid office. In our economy you may find that the Legal Aid is over worked, understaffed and low on money. Talk to them. Do not give up.
In addition to the above answer, the lenders may very well let the tenant stay in the house on a month to month basis. The tenant must cooperate to sell the property. They must move out on very little notice.
When a condo association takes ownership of a unit threw foreclosure, they take it subject to the debt. They do not become liable for the first mortgage. Many HOA's are are taking the units and are renting them out. Some times they "forget" to tell the tenants of the foreclosure.
This is a hard question to answer with the few facts that are in your question. The lender has a 5 year statute of limitation from the date the note was accelerated. If the case is dismissed again or the 5 years has run, the is a strong likelihood that they may be bared from foreclosing.
In a short sale, you are selling your home to a 3rd party. When you sell a house you should be ready to move out on the day of the closing. I do not have enough information to answer the question. If you know who bought the house, that would be helpful.
It is great that you filed an answer in time for you to protect yourself from a default. In addition your answer puts the parties on notice that there is someone in the home with rights. If you have a lease it is important to file it with the Clerk of Court and send a copy to all of the parties.
A client came to me last week and showed me a court order that evicted him from the home he was leasing. He did sent a copy of his lease to the lenders attorney. They conveniently forgot about it....
You can evict her if you and her cannot come to some agreement on the amount of rent. The fact that she payed the bank rent in the past is not an issue. When you bought the house any rights she had went away.