It appears you obtained a valid judgment against your former tenant that may operate as a lien on their property. If that's the case, the bank will join you as a defendant to extinguish your rights against the property as part of their procedure, so they can foreclose and obtain a clear title (which allows them to re-sell it).
You have a second lien against the property, the bank has a first lien. Call the bank's lawyer and tell them you will give up your lien and to take you out of the lawsuit. If you fight you will throw good money after bad money. Best of luck
This answer is provided by Manuel A. Juarez, Esq., 'El Abogado Hispano de California, and it is of a general context and is not intended to form an attorney client relationship. I am licensed only in California. This information is good only in California and it is not to be taken as legal advice on divorce, family matters, bankruptcy or in any other type of situation. Esta respuesta es del Abogado Hispano Manuel A. Juárez, 510-206-4492. Abogado Hispano de Divorcios, Accidentes, y Bancarrotas de Oakland, Hayward, San Francisco, y California. Estas respuesta son solo para información general y no consisten en consejo legal sobre divorcios, mantención de esposas, mantención de hijos o bancarrotas. Las respuestas son comentarios legales que no forman una relación de abogado y cliente. Soy licenciado solo en el Estado de California.