Legal Question in Real Estate Law in California

Re: real estate loan

No. The mortgage remains in effect as an obligation of the estate, and the lien continues to encumber the collateral real estate.

Your brief question does not indicate whether there was a will or trust, whether a probate proceeding is or soon will be under way, whether anyone else is a co-borrower on the mortgage, how title to the mortgaged real property was or is held, or any other key facts that might bear upon giving you proper advice.

However, the short answer is that the loan does not have to be re-done, but re-doing it may be an appropriate part of settling her affairs.

I would strongly recommend that for your own peace of mind that you have at least a short conference with a local attorney who handles administration of estates matters as to whether probate is necessary and how to handle things like deeds, mortgages, other heirs, taxes, etc.