I live in California, the home I lease is in foreclosure. I pay rent to a Management Co.and contract says they whitheld the security deposit in their trust account. A neighbor told me the house was for sale for almost 1 1/2 year before I moved in that means the seller was planning in getting some money from a renter and then foreclosed the house. Is that legal? What are my rights? I do not want to move my husband's job and daughter's school will affect us tremendously. Also the Management Co. the last time I paid my rent said they did not recognized the address but still received my rent. I am wonder if the owner already told them and canceled the contract with them and the Mgmt. co. is keeping my rent how can I check? Please help me.

First, just because the house was for sale does not mean what you said it means. As long as you have a lease a buyer would have to honor it.

However, CA does have a law that states that any rental income must be paid toward an outstanding mortgage first. So, if a homeowner rented you a house and then did not make payments on the mortgage for the at least the 1st year of rental, they would be violating the law. The law is SB1137. You can search for it for more details.