Deed of Trust

Question: can a house foreclose on an unpaid second Deed of Trust?

So the other day when I came home there was a letter on the door from "The Foreclosure Company" in camble california and it stated "you are in default under a Deed of Trust dated December 1,2008...." we immediately contacted the owner of the house and she said that she is in default on the second loan of the house but the first loan is up to date and to send her that letter so she can keep it for he/r records. She told us we had nothing to worry about my question is:
Can a house foreclose on an unpaid second Deed of Trust
and since we are renters what are out rights how can we find out if the house is really in foreclosure?
she has us send the rent checks directly to the bank she has the mortgagee with so that leads me to believe she is being honest with me. I may benaivee but please any helpful NON-RUDE answers would be kindlyappreciatedd.

Answer: The owner of that second Deed of Trust can in fact foreclose, even if the underlying first is current. This is not really that unusual. The foreclosure has in fact already started and if the present landlady does not pay up, she could actually lose the house to the holder of the second in about 4 months time. The next letter you get from the Foreclosure Co. if that default is not cured, is about 3 months after the recording of the default you listed above. It will read "Notice of Sale". By California law a tenant must be given at least 30 to 60 days to vacate the home after a trustee sale, if the the new owner does not want to keep you as a tenant. However, if you are on a lease AND that lease predates the date of recording on that Deed of Trust (Dec. 1, 2008), then your lease is valid to the end of your lease, even on a change of ownership.

Deed of Trust