Olvera

—Plaintiffs Elias S. Olvera, Sr., and Annie Olvera (hereinafter the Olveras) appeal from an order vacating a default judgment entered in their favor against defendant Paula Olvera (hereinafter Paula). Although the record and the briefs on appeal reflect a considerable lack of clarity with respect to the governing law, we hold that the trial court properly granted relief.

Statement of Facts

The Olveras filed this action on June 30, 1988, against Paula and Richard Olvera for breach of contract, fraud and the remedy of specific performance. Plaintiffs alleged that in 1985, they had orally agreed to lend $17,000 to defendants, and that defendants had orally agreed either to execute a second deed of trust on property located at 2840 Collingswood, in Riverside, California, as security for the loan, or to obtain a loan on the property from another source and repay plaintiffs “immediately.” Plaintiffs further alleged that defendants had failed to repay the entire sum or to execute the trust deed as security, and sought the remedies of a money judgment and specific performance of the promise to execute a trust deed.

On the same date, the Olveras filed a notice of recordation of…