Legal Question in Landlord & Tenant Law in Washington

Ouch. Landlord should be liable for the amount, and possibly also a hefty penalty depending upon whether you made the payment after the home was in foreclosure (or at what stage of foreclosure). You'll need to review the contract as well. Most leases with options to purchase are very poorly written if not expertly done and, frankly, are often not at all binding. My biggest concern would be, depending on the down payment amount, whether the landlord will be filing BK.