Legal Question in Wills and Trusts in California

Unless a child was a joint (or other kind of) owner with your parents or your parents had created a trust to pass on the real property, probate would have to be open to deal with title to the property. It should be pretty straightforward and should not cost much to achieve your goal.

It would be worth your while, though, to continue to pay the home loan so that the bank won't foreclose. I suspect what you mean by an "$80,000 balance" is that there is $80,000 in equity. That is amazing in this terrible economy. Good luck!

Because there is real property, likely there will need to be a probate. It cannot be sold until title is cleared and that is what probate does. The $95K and expenses of administration are paid and then, if there was no will, the property goes to the children typically.

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Correct - "probate" is the legal process that transfers title to property after death. Holding property under "joint tenancy", or through a trust, solves this purpose as well (and are done to avoid the time and cost of probate).

You should find a good probate attorney in your area.