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Selling Real Estate Before Foreclosure During San Diego Probate

It is an all too common scenario that an estate consists mostly of real estate that is encumbered by a mortgage. Problems can arise in this situation if there is a lack of readily available funds to continue paying mortgage bills. When this happens, the lender will often initiate a foreclosure during the San Diego probate. Oftentimes, the personal representative will try to sell the real estate before the foreclosure proceedings are completed. This allows the personal representative to pay the debts of the estates. At the same time, it will hopefully allow them to preserve some of the assets for the beneficiaries as well.

How are these proceeds dealt with? The following is the order in which they may be applied:

  1. First, proceeds should first be applied to cover the expenses of administration that are reasonably related to the property that was sold.
  2. Additionally, proceeds may then be applied to the expenses related to the sale of the property.
  3. Proceeds will thereafter be used to satisfy the outstanding amounts owed to the lender that are secured by the lien on property.
  4. Lastly, any remaining proceeds shall be distributed to the estate.

It is the responsibility of the personal representative to properly distribute any proceeds that are received by the estate. This money will likely be used to pay other expenses of the estate and, ultimately, will be distributed to the beneficiaries or heirs. For more information about what to expect during the probate administration process, view our free guide, The Insider’s Guide to California Probate and Trust Administration. Contact an experienced probate attorney in San Diego today for a consultation by calling our toll-free number at (888) 443-6590.

Probate (noun):

The process of proving in court that the will of a person who has died is valid. It involves proving before a competent judicial authority that a document offered for official recognition and registration as the last will and testament of a deceased person is genuine. Not all wills must go through this in California. See our infographic to help you determine if your loved one’s estate must go through probate.

Estate (noun):

An estate includes the things that a person owns. The things left by someone who has died can be distributed based on a Will, Trust, or Intestate laws. Estates have to be administered in the Probate Court if the estate meets certain criteria. See our Infographic on The Probate Process.

Related Links:

Probate Foreclosure in California

Saving a House From Foreclosure in California

Scott Grossman

Scott Grossman


The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307

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