being in a bad neigborhood does not justify that you did not pay 2 months of rent so you can not say “and on top of dealing with this neighbors, i have to pay 500”. do not mix things as no matter what you had a contract.
if you did not renew the lease you are in the case of anybody that has a month to month, if the landlord decide to terminate you have to go, that simple.
if they are or not in foreclosure, i still do not see the reason why you think you have the right to stop paying rent.
i think you should leave (clearly not a good neighborhood)and if you are an honest be ready to pay what you owe, maybe rent something smaller/cheaper so that you can afford your debts.