Originally Posted by Fr_Chuck
Yes, as long as he is legal owner of that property, he can do what ever he wants with the money, bet it on the ponies, or party till the cows come home. to make it short and pehaps a bit rude, legally it is none of your business what he does with the money.
I know it can and will effect you, but he does not have to account to you for what he does with that money,
And even after the foreclosure, he can sue you for any unpaid rents for the time he owned the rental that you did not pay.
But now I will even make it worst for you, if you did not have it bad enough, since he is losing the house, most likely has no money, after it is foreclosed and they ask you to move, he is not going to have any money to pay your deposit back, so you will end up having to sue him and hope he does not file bankrutpcy.