Does she have a Lease? If so there is new federal law
(Protecting Tenants at Foreclosure Act) that will protect her. She will have to pay rent to the bank, but the bank will have to honor the lease as long as the lease is considered an arms length transaction. Arms length meaning that the renter and the landlord are not related. Also the lease has to be at market rates, it cannot be a sweetheart deal.
Anyone in this position needs to realize that if they do not pa rent according to the lease to the new owners (usually the bank) the new owners can issues a 3 day notice to pay rent or quit and then start eviction proceedings.
She really needs to get an attorney involved as I am not an attorney, but I am currently dealing with this situation on property as the representative for US Bank. It's either 1972 or 1978 and if the home is older than that then you need to see if Rent Control affects the property. The new act and rent control is a real problem for the banks that foreclose now.
If the homeowner has been issued a Notice of Default, it will be in public records.. HOWEVER, you can find out if it looks like the chances the owner will default are high (meaning - the owner owes $500k when the home is only worth $250K) They're so negative, default is more likely.
Good to rent a home where you know the owner has equity.