Legal Question in Real Estate Law in California

Rather than asking for documents, it seems to me it would be worth while to run all this by a competent real-estate attorney in your neighborhood. It might cost you the equivalent of a month's payment or so to have good advice. Assuming the second is a standard note and deed of trust, you should be looking for a full reconveyance from the trustee, surrender of the note, and something in writing explaining the deal and signed by the lender; I'd be cautious about any rights the lender retains and in particular I'd look for whatever the lender is getting in return for making what sounds on its face to be too generous to be completely true.