Legal Question in Real Estate Law in California

Way too few facts given. What is being alleged in the suit? What kind of settlement are they offering? What caused this debt to be overlooked? The title company seems to be overly aggressive at first glance, but perhaps a closer look would show that you are not blameless and need to consider settling on terms that are not too unfair. In any case, this situation warrants your sitting down with a local lawyer with real estate loan experience and having a full in-person discussion. Do this before the time to answer the complaint expires or gets too close.

Yes, as Mr. Whipple says, you need a consultation with an attorney, right away, to review all the documents and facts. Do not even let the deadline to respond to the lawsuit get close. Some types of fraud can not be discharged in a Chapter 7 bankruptcy, so that may not be an option. You may have a perfectly good defense to the lawsuit, anyway.