First thing he should do is to dig up the preliminary title report that he received when he was in escrow. That preliminary title report should have all of the liens that were filed and recorded on the property prior to purchase.
Technically, to be honest when a home transfers ownership, the new owner is actually liable for any previous liens.
Without knowing the specifics it sounds like this lien was probably a second that should have been wiped out when the home was originally went to trustee sale. I am assuming your friend bought it well after 2006.
So that is your very first step, get hold of that preliminary title report, check all the liens on it. Then get hold of the original title officer and ask them why this lien was not identified. You should probably check to see when this lien was originated and recorded as well.
It may not be a bad idea to talk to an attorney. Ignoring the problem is not a good idea. Your friend may also want to call ndex as well to get more details and dates to see if they line up. Also he should get the date of the original trustee sale and then let ndex know that. Somewhere someone slipped up. Should be resolvable.
