Legal Question in Real Estate Law in California

You basically have the same right as with the previous owner. If you are a month-to-month tenant, the new owner can give you a 60 day notice [30 days if you have lived there less than a year]. Many lenders, stupidly, do want the house vacant as they feel it is easier to sell. They will often offer you key money for you to move out. You need to contact the owner to find out what has happened with your security deposit, as if he is going to lose the house most people will take everything out of it they can. The foreclosing lender will refuse to refund the security deposit even though they might have some liability.

Rights? To try to negotiate a deal with the new owner that will allow you to continue as tenants. With a foreclosure, the owner is the bank/lender that is foreclosing. If it actually sells at auction, the new buyer is the one. Contact them.