Mortgage holder Amer Haddadin says he is starting foreclosure proceedings on the $565,000 La Habra residence because the family hasn't kept up the payments.
His friend and adviser, Ramsey Masso, said Friday that Haddadin signed over the home to Suleman's father last year.
Ed Suleman, who leased the home to his daughter, was supposed to pay about $4,000 a month and a final balloon payment of $450,000 that was due earlier this month.
Masso says the family was late on recent payments and also missed the balloon payment.
Calls to the Suleman's attorney, Jeff Czech, weren't immediately returned.