So what happens if your landlord doesn't tell you they are in foreclosure and that they have spent all your security deposits? What rights do I have then?

Foreclosure doesn't necessarrily end your lease. If and when the foreclosure is complete the bank of whoever is the new owner will tell you what to do. If your old landlord fails to pay back your deposit you could sue, sueing someone who just lost a building may be a waste of time.

In NJ if your landlord has failed to place your security deposit in a separate interest-bearing account and has failed to tell you which bank it's in, you can send them a letter telling them to apply the security deposit to the rent as it becomes due.

So, for example, if you paid 1.5 months rent as security and it is not in a separate interest-bearing account or they did not tell you in which bank it was held, you can send them a letter telling them to apply the security deposit to your rent for March and half of April.

This law applies to all residential tenancies except if the property is an owner-occupied 2 or 3 family home. In that case you can send the landlord a letter asking them to fulfill the requirements of the Security Deposit Law. Then 30 days later you can send another letter telling them to apply the security deposit to April and one half of May.