Legal Question in Wills and Trusts in California

father in laws house is in a trust, he then took out a loan on the house for most of it's value and gave it to his son, since that time his daughter and I have moved in, and made a verbal agreement to pay for our share of the house, and paid most of the mortgage payments and all of the house expenses, after he passes, we can assume the loan I have found out.

can the executer of the trust ( his other daughter ) now sell the house if we hold the loan mortgage on it?


Asked on 4/04/16, 12:32 pm

1 Answer from Attorneys
Scott Jordan Jordan Law Office

Based on what you have written, you do not "hold the loan mortgage", the bank does. The bank presumably has a security interest in the house and must be paid off before they will release the property to any new buyer. You have been paying the mortgage, similar to rent. Title to the property is held and owned by the trust and the trustee probably has the power to sell or keep the property, unless you have a life-estate or some other beneficial right in the property. Paying the mortgage does not give you that right, by itself.

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Answered on 4/04/16, 4:02 pm


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