I would start by going to the clerk's office and reporting the deed as fraud.  She still owns the property, it's not like someone forging a deed divests you.  I would also call the lawfirm or whoever handled the transaction and put them on notice.  If there is a lender, put them on notice immediately.  I would notify the property appraiser and the tax office.  Finally notice the new homeowner and tell them they better file on their policy if they got one.

In GA you could file an Affidavit, not sure what mechanisms are in place in CA.   She can report it to the DA and the FBI.  Depending on what the property is worth is going to have a lot to do with how seriously they take it.

 She needs to find out immediately what she can file in the public records to put everyone on notice that this is a fraud deed.   If she doesn't have a lot of money, the legal aid may be a good avenue as well. 

 I also see more and more clerks adding a notification system for property owners so anytime anything is filed against the property they notice the current owner.  Not sure how that helps, since they gladly take the money to file the documents, however, I suppose early notice is better than no notice.