There is some good advice below. Just want to add an additional word of caution and a way to verify if you are "not on the loan". Pull a credit report on yourself. Check to see if this loan appears anywhere on YOUR credit report. If you co-signed in any way, then this might come through on your credit. Remember, by the time there is a Notice of Default filed, there have been a number of missed payments. See if they appear on your credit report. If you see no sign on your credit report, then you are probably okay. However, to really be able to sleep at night, take a copy of the note and deed of trust, along with the document that placed you on title to an attorney and have them verify that you are not obligated under the debt. That is the best way to know your liability on this issue. If you need a referral to a real estate attorney in LA, let me know. Dare to Dream.
Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty