The lease is most likely going to be broken when your landlord ends up in Foreclosure. I would take the listing and do your best to help him, but inform him that he is going to let you out of the lease just as soon as you find something else. I'm sorry that you have to deal with this.
I wouldn't send him another check either. People who are in poor financial situations often will not have retained your deposit and will not be able to return it to you. I hope that helps.