You need to file a motion to set aside the default. Generally the Clerk or Judge will review the court file before entering a default. So this is unusual. Maybe your answer did not get into the court file. Setting aside a default can be tricky. Affidavits may be required and an answer demonstrating a meritorious defense.
You can file an answer indicationg that you are the tennant in possion under lease with defendant owner. File it with the court and send copy to plaintiff's attorney. You have to pay rent while you are in possession. Look at lease to see if foreclosure entitles you to terminate lease or ask landlord's permission for early termination. Make sure everything is in writing.
Since you are just a renter you were sued only to bring all parties with an interest in the property into the foreclosure action. Since you moved out it should not be a problem for you in connection with the foreclosure lawsuit.
The lender cannot go after any money until it has a judgment and sells the property for a sum less than what is owed. As for your father bank account, if your father does not own your home with you, then the bank account should be safe.