My landlord told me two months ago that he is trying to shortsale the condo I rent from him. After that, the water heater broke (old age) and flooded the hall way and dining room/living room. The carpets been taken out, and everythings been dried, waiting for a replacement, but my landlord hasn't talked to the insurance company nor any contractors to replace the carpet. There are nails sticking out of the floor everywhere and half the condo is now cement floor. I have 1 more month left on my lease and had been hoping to reup it but now I'm not so sure I'd want to. It seems he doesn't care to take care of the carpet since he's trying to dump it. What can I do? Should I even bother ans just try and get out even though my lease isn't up yet. I've been paying rent early this whole time, but I feel like I've been screwed... can I legally get my rent back that I paid him since he stopped paying his mortgage? He hasn't even been keeping up with the HOA since I got a notice of lien from them that I sent his way. What can I do? Do I have to pay my full rent for a carpetless, nail filled condo?

Take pictures.
Write it all down, with dates.
You can't get rent back just because he stopped paying his mortgage.
You can try witholding rent, but that's not supposed to be the way it works - you should go to small claims, and put rents in escrow with a lawyer.
Thinking of renewing is a dream, so find a new place, or offer him a bargain price for the condo. WITH a lawyer to be sure you aren't buying something with hidden financial problems.

Unless you are in California (ANY question on law needs to include your general locale as laws vary by area.) you have no chance of getting rent back. Even in CA your chances are slim.

Since you have only a month to go, give notice and find a new place. By the time you go through all the legal processes to your lease will have expired.