Review your loan paperwork to see exactly what your closing fees to be paid out of pocket were and that were rolled into your loan, interest rate (is if fixed or adjustable), length of term, verify your loan amount and your escrow collected: Start from the beginning, make sure that your payments were not late and there are no late fees. After you review your paperwork, give your Loan Officer a call to discuss the issues you are having and maybe they can assist you in finding out what is going on with your loan.
You need to review the paperwork you signed from the lender and Homepath to see first if you signed the "Owner Occupancy Certification." If your financing and purchase was with the requirement that you will occupy the home within the first 60 days and live there until the 1st year has passed, there are legal and financial penalties if you fail to do so. Review your paperwork to see if there is information on who to contact if you are unable to occupy the property as agreed. Definitely contact your lender and get them involved now. Make sure you have all of your documention regarding your income change to submit for proof if needed, usually pay stubs and a letter of explanation. Good Luck!
Your are asking for legal advice regarding your foreclosure and the circumstances that may have caused you to get there - you need to contact an attorney to get the answer you are looking for, Realtor's are not attorney's and cannot give legal advice.
A Landlord can require a Tenant to obtain Renter's Insurance and list them (Landlord) as an "additional insured" and they can require a minimum amount of coverage for the policy. By adding the Landlord to the policy they are protected should injury or property damage be caused due to Tenant negligence. If the Landlord is requiring insurance to rent, make sure it is in writing and that it they are requiring minimum amount of coverage or insurance company that it is in writing as well as the Landlord's rights should the insurance not be purchased. Even if Renter's Insurance is not required it is something everyone who is renting should consider as the Landlord's insurance covers the structural damage, it will not cover a personal property owned by their Tenants. In addition to the personal property loss expense should something happen, a Tenant could be held liable to repay any money paid to repair damage from their negligence.It is also a good idea to check your state laws regarding Landlord/Tenant contracts and what they are allowed to require.