In some states, a lien-holder has the right to foreclose on real property. California is not one of those states.
Regarding the rental income, as I read California Civil Procedure Section 706.010-706.011 and Section 706.05 and Section 703.010-703.150, rental income is not a wage under California law. Therefore, it may not be garnished.
However, I hasten to add that there may be facts particular to your situation that you did not disclose, and my observations here are not legal advice. Consult with a California attorney who can review your situation in detail.
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