I have more of a statement than a answer. We have recently received a notice that our landlord is in foreclosure on our house we are renting. Why does it seem he has more rights than we do? We HAVE to keep paying and keep up our terms of the lease but since he scammed on refinancing this house to buy 2 houses in Florida, he has those free and clear and doesn't care if they take this one since he used it for collateral for the loan. We didn't know he hasn't been paying the mortgage and now we are screwed and not able to keep the house for another year. How is this fair? I am dumbfounded that we have to continue to pay him, even though he is NOT paying the mortgage company. Who made this law?

I understand the need to vent, but you shouldn't do so on another person's thread. So I've moved your post to its own thread.

To answer your question, lets look on it from the other end. A home owner, for whatever reason has to move. The only way they can still afford the upkeep is by renting. They are trying to keep from losing their investment. If the tenant stops paying, they can't keep the mortgage up at all.

Lets also look at the fact that the tenant is occupying the property. As long as they do so, they should be paying for the privilege. As long as the landlord is the owner of the property, then you are legally obligated to make payments to him. What he does with those payments is mostly none of your business. It will only affect you if you are forced to vacate before the expiration of your lease.

Now I do appreciate what you are saying. It is certainly fraudulent to borrow money and use it for other purchases, and renege on the loan. If you are sure of your facts here, report it to the mortgage lender, they may be able to take action against the landlord for fraud. You might even be able to sue the landlord if you can prove he deliberately stopped payment on the mortgage, because he had taken his equity out in the form of mortgages.

California has recognized this and does have a law on the books to prosecute landlords who do things like this. Maybe other states will follow suit.

Finally, no one ever said that laws are fair. Very often they are not. I don't think it fair for a tenant to withhold rent unless the landlord is not providing a habitable premise.