Legal Question in Real Estate Law in California

I seriously doubt that Bank of America separated the note from the mortgage. First of all, if you live in California, you don't have a mortgage at all. California law recognizes mortgages, but no one uses them. The security instrument of choice in California is a deed of trust. I've never seen an actual mortgage in California. The fact that you refer to it as a mortgage is an indication that you have already taken a step in the wrong direction, because the laws governing mortgages and deeds of trust are different in several critical areas, especially with regard to transfers.

Second, transfer of the note automatically transfers the deed of trust, without the necessity of recording any document, or signing any document. Transfers of security instruments through what is commonly called the "Secondary Mortgage Market" are vital to the nation's economy, and without it, lenders would not be able to lend money to more borrowers.

Third, a transfer of the note expressly without the security interest is a legal nullity, and does not obviate the need to pay the underlying debt. "[A] deed of trust has no assignable quality independent of the debt, it may not be assigned or transferred apart from the debt, and an attempt to assign the deed of trust without a transfer of the debt is without effect." (Domarad v. Fisher & Burke, Inc. (1st Dist. 1969) 270 Cal.App.2d 543, 553-554.)

In simpler terms, you don't get the house for free.