Legal Question in Real Estate Law in California

I'm not sure why you think you were dropped from the note. A debtor does not just "drop" from a note. The note is the note until it is paid off. Unless you and your parents signed a new note when the debt was sold (which I am 99.999999999% sure didn't happen) nothing about the note changed. If you mean your name doesn't appear on the statements, that is of no legal relevance. It probably just means their computer billing system doesn't have enough lines to print three names on bills. That has zero relevance to the legal status of the loan and the debtors on it. Since the IRS paperwork MUST show all borrowers, their system prints out your name on the tax documents. Again, other than telling the IRS who is entitled to take some or all of the interest deduction, this has no bearing on who is "on the note."