Legal Question in Real Estate Law in California

Re: Reverse Mortgage and death

My condolences on the loss of your mother-in-law. First and foremost, as she owned a home, you will need to probate her estate. Contact a probate attorney to discuss that procedure. As for the house, you will need the probate so someone has the legal authority to sell the home on behalf of the deceased. Interest will accrue while the home is for sale, and if it cannot be sold for the loan balance, then you have two options - either a short sale in which the bank agrees to take less than what they are owed, or walk away and let the lender foreclose. The bank might take a deed-in-lieu of foreclosure, but generally they will want to foreclose to remove any other potential liens against the property.

Contact a probate attorney right away, as you want to get that process started, and get approval to sell the home.

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