Legal Question in Real Estate Law in California

There is no legal requirement to inform the lender that the original borrower is deceased, if that is your question.

Mr. Roach is correct, technically. Ultimately, however, the property will have to be taken out of the deceased person's name and put in the name of whomever inherits it. At that point the lender must be notified or it will be a breach of the loan entitling the lender to foreclose even if payments are current. There really is no reason NOT to tell the lender, however, since California (and maybe federal) law requires the lender to leave the loan in place once the property is transferred to an heir or heirs, as long as payments are kept current and any other terms of the loan continue to be met. So it's better to inform the lender and keep them in the loop through the probate or other estate processing procedures to make sure you preserve the right to keep the loan until you want to sell or refinance.