I ask because a somewhat usurious former coworker (the lender) has a notarized agreement with a family member (the borrower) for a significant debt, where the house is used as collateral. The payment installations are exceedingly too much for the family member to afford while paying off mortgage and other debts.
If the house title is transferred to another family member, can it still be used as collateral if the borrower defaults on the promissory note loan?
Edit: The house is located in California, and the promissory note was also drafted in California, without a lawyer present, but signed by a notary.