I need to know what are our rights as a rentals when the owner is in foreclosure and she never revealed to us we found out accidentally and now she is claiming that its OK and asking for the full rent.

You still have to pay the rent.

The owner being in foreclosure has nothing to do with the agreement/lease that they have with you.

Failure to pay, could end up getting you evicted, and sued for the back rent and fees.

Once the property is actually foreclosed, then you will have to look at the options that are available at that time.

Unless you live in California, if you don't pay full rent they will and can evict you, you have basically no rights, if and when the property does foreclose they will give you notice to move. But as long as the owner of the property still owns it, you are obligated to pay the rent, what they do with the money is not something you have a say with.

In California, if they are really in foreclosure and do not have a plan worked out with the mortgage company it is possible to withhold rent till it is worked out. But this is a fairly new law, not had a lot of law suits proving how it will hold up in court either yet. So if you are in California I would get an attorney to advise me