Can A Tenant Refuse To Pay Rent Because A Property Is In Pre-foreclosure?

Not to sound like a smart Alec but you can refuse but they can also evict you.  Remember that rent is what you pay to live there now.  It is not ownership.  Whether or not the landlord is using the money to pay the mortgage doesn't really mean anything.  You're simply paying to be there.

That said, however, it IS a hardship for someone to have to move when a property they are renting is foreclosed on.  There is now a new law since around May that spells out some rights you have as a tenant.  One of those is that you can stay throughout the remaining time of your lease even if there is a foreclosure.  The exception would be if the new buyer intends to move in.  They can cancel your lease with 90 days notice unless your state has laws that say otherwise - as long as it's at least 90 days.  In other words if your state says you stay there until lease is up then great.  If your state says they can evict with 30 days notice then the federal law overrules and you have 90 days.

Hope this helps.