It depends on what the HOA rules and regulations state, whether they are "covenants running with the land", and a number of other factors. The HOA board should attempt, to the extent allowable by the indentures, to proceed before the foreclosure. After the foreclosure, they could probably sue the homeowner.
Talk to a Boston real estate attorney about this.
Your rights depend on whether you are a renter or an owner. I would also tell you that many foreclosures are invalid because of their lack of documentation. You should talk to a lawyer who is versed in this area of the law. Ice Legal is a firm in Florida with a good reputation on these issues.
I would like to talk to you about your case. It seems that lenders have played fast and loose with many rules in this setting, and you may have more rights than you think.
The lender can demand possession all they want; you do not have to hand over possession until they file suit against you. In the mean time, you should definitely contact a lawyer and discuss your rights. Make sure they know about securitization of loans, MERS loans and other complex foreclosure-related issues. These...
The previous two answers covered the unlawful detainer angle. I would only advise you to make sure that the deed you got actually conveyed good title. There is a tremendous amount of flux in this area of the law right now, and the title insurance you got (if you got any) was probably written by a company that is owned by the law firms who just foreclosed on the property.
"Legally binding"? Probably not. But they point to the constant oddities surrounding foreclosures. You need to figure out quickly what is going on with your loan, and see if there is any action you can take prior to foreclosure.
You should refer to my guide on AVVO for people facing foreclosure, and feel free to call our office with questions.
Call a local attorney immediately. Consult with the police too. I kind of doubt it was really the police; they would know all the remedies that a tenant would have. You have significant rights as a tenant in California. Get a lawyer with the spine to help you.