Grossman Law Firm Blog

Foreclosure and probate in California

Foreclosure and probate are no strangers to each other in California.  In our badly depressed real estate market many homes are worth less than the mortgages on them.  Unfortunately, the obligation to make timely mortgage payments doesn't stop, or even pause, when your loved one dies.  Some people think there is some type of grace period in which the mortgage payments temporarily cease while the probate process gets under way.  This simply isn't so.

If you are an executor and become aware the probate estate is facing foreclosure on a piece of real estate then you must act quickly.  Inform your probate attorney the foreclosure process has begun.

If there is equity in the property so it is worth saving then your probate lawyer will probably do one of two things.  First, contact the lender and see if the loan can be brought current.  If the probate estate has enough cash available then this is the fastest, simplest way to save the property.  You will be able to use that cash to save the property if your letters testamentary or letters of administration have already issued.

Your second option for saving a property in foreclosure is to have your probate lawyer obtain a temporary restraining order to prevent the lender from foreclosing on the property.  This is definitely not your best option.  As you might imagine, judges are well aware of how these prejudice a lender who is trying to collect a legitimate debt.  If the property is not sold during the period of the first order the judge will probably allow the lender to foreclose when the order expires.