This form is a simple Assignment of Note and Deed of Trust as Security for Debt of Third Party. The collateral is offered as security for a third party's loan when the third party cannot procure the loan based on existing security available, and guarantor wishes to offer security on behalf of third party. Adapt to fit your specific circumstances.
The process typically requires drafting an Assignment agreement, having all parties sign it, and then recording the assignment with the local government to make it official.
Yes, it’s fairly common in Irvine and other places, especially in real estate transactions and when dealing with investment properties.