Many probates involve real estate where a mortgage or loan, is secured by a deed of trust which is recorded against title of the subject real property. Properly recorded mortgages survive the death of the borrower/owner of the property, and remain as liens against the real property through probate. As a result, mortgages are not subject to probate creditors’ claims and time limits requirements for making a claim against probate.
If a mortgage is not paid off during probate administration, the lender may eventually foreclose against the real property, even during the course of a probate proceeding. The probate administrator is not required to pay off the loan through probate. It is important to communicate with the lender through the course of the probate. If the lender knows that the subject real property is being marketed for sale during the probate, the lender will usually hold off on foreclosing, pending sale of the real property through the probate proceeding.
This information is not to be taken as legal advice, and you are encouraged to see your Walnut Creek Probate Attorney.