Acquiring California Deed of Trust of Real Estate under Inheritance

Acquiring real estate under inheritance means the property of the deceased person will be transfer to his spouse, family, son and daughter. Inheriting real property in California creating uncertainty for inheritors. There is no any law which prohibits the inheritance from property, which is either secured under trust deed or not. One law of secured of real property for everyone is available, that is right of inheritance and this law is applicable on all type of properties including the properties which are under the Trust Deed. For transfer of inheritance all consequences will be checked. Sometime inheriting secured properties are instructed to sell or suggest for foreclose but there is not forced to take the passion of property. What you decided about inherited property depended on many factors, because you are not legally bound or obligated to accept the inherited property. If you inherited a property with trust deed then it is up to you to pay the debt or goes to trustee for starting the foreclose process.

Trust of deeds has many features under due on sale that prevents the inheritance property to sale. So deed of trust underlying loan can be inherited after paying debts. There are barriers for some causes for sale.

Joint Tenancy

Under German Act, if one co-owner dies then secured lender cannot be enforce to pay the indebtedness. This rule is applicable in both cases whether the co-owners are relative or not. In California if you own the property as joint tenant with spouse, friend, business partner, relative or life partner you will get full ownership after paying debt through the operation of law or under indebtedness continues without changing the terms and conditions. Foreclose process can be started on the option of the live partner.

Spouses

Sometime spouses take loan against real property with the joint names. If you hold the property jointly then in case of death of spouse the rights of half property automatically passed to the spouse but in this case spouse will continue to make full payments as he become the responsible for whole property so he will be paid full amount of loan with interest. But federal law prohibits the lender because the one spouse has passed even you are the responsible for whole property or you own the entire house. Surviving spouse has a right to pay on the behalf of deceases spouses. Because lender has to concern with the payment either he receive it form foreclosure.

Relatives

When relative inherits the residence of secured loan they also have a right up to the relatives who are intend to live in house. But there is necessary to pay the debt, if regular payments are made to lender then lender by law cannot start the process of foreclosure.

Conclusion:

If one of the borrower try to probate a deed of trust after the death of co-owner the process can confusing because in such case you may or may not know what to do with the property. So in such case contact with trustee to information for decision making.