In most cases the money stays in the registry until the hearing or trial but the landlord can petition the court to release the rent from the registry. As long as you are in the property the landlord is entitled to rent, the question is whether you are entitled to a credit or reduction in the rent for each month. If you don't have an attorney I suggest you retain one immediately so that you can properly prepare your case for trial.
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The judge probably granted the motion of he landlord because your 7 day notice was defective. The notice must be sent by certified mail return receipt requested. No other type of delivery is acceptable. You should consult an experienced real estate lawyer to help you in your dealings with the landlord.
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