Short sale Maryland Laws?

[aswynn81]

We were renting a house in Maryland 4 months before the end of the lease the landlord told us he has to move back in would let us leave early with no charges. We thought he was having money issues so we kept our costs for the move down ie we didn't pay to have the house cleaned,carpet etc we took a week after the first of the month and he would charge us for all this out of the deposit. Of which we later found He had never put it in an escrow account. He used it the day after we paid him for a gift his wife later told us about.
We did all that cause we knew he wasn't going to pay us anything.
Now 2 months later we see the house is a certified short sale.
Can he short sale a house while we were still living in it. I understand he has to miss 2 months payments. That would mean the 1 week we were in the house & charged rent for he did t make the payment.
Can he do that?
I know some states don't let you list a short sale for 6 month after a tenant has moved out and the owner must live in it. He still isnt living in it.
Would love to know who we tell this too if he is cheating the system?

[vemados]

There are no such laws in any state. States do not get involved in legislating such types of issues. There may be some lenders who go by that type of system, but that is between the owner and the lender. As well, there are no laws which require the landlord to make the payment while you are renting the property.