Legal Question in Consumer Law in California

You have to keep paying her the rent until she has been foreclosed on. This occurs when her "equity of redemption" is terminated. If the bank forecloses nonjudicially through a trustee's sale, then that will happen at the trustee's sale. I would certainly make sure the bank knows you are renters. If the bank purchases the property at the trustee's sale, the bank will become the owner of the property, and is entitled to rent from you. (This is commonly referred to as REO property.) The bank may want to keep you in if you are paying rent on time.

If the bank files a lawsuit, they may have a receiver appointed. In that situation, you would pay rent to the receiver, and not to the owner. If no receiver is appointed, and an action to foreclose is filed, your owner's right of redemption will depend on whether or not the bank is entitled to a deficiency judgment, which depends on other factors.