Legal Question in Real Estate Law in California

The lender is interested in getting paid, not in forcing a sale. (I'm assuming this is a conventional "borrowing" type mortgage, and not a reverse mortgage). Then, you have several possibilties, including (a) continuing to pay the mortgage, and if you do this, renting out the property should provide the necessary cash flow; (b) refinancing; (c) paying off the mortgage with cash from other sources (more readily done when the remaining balance is low, of course, as it often is with borrowers in their 90s). Getting on title with her would be a bad mistake from a tax standoint in 99% of situations; you'll inherit with a stepped-up basis if you are not on title at the time she dies.

Suggestion: discuss the situation with (a) a representative of the lender; (b) a tax advisor; and (c) an attorney who specializes in estate planning.

Make sure the house is in the living trust and that the recorded title reflects this.

Whichever of the heirs will become the successor trustees of the living trust may want to have a preliminary planning discussion with the attorney who prepared the trust, to be ready to assume their duties.

It seems to me that you are concerned about a "due on sale" clause. In this particular situation, you seem concerned as to whether the bank will declare all of the money due upon your mother's death.

Under both federal and state law, a transfer into a living trust is exempt from a due on sale clause. In other words, the lender cannot accelerate the loan and demand the entire amount due and payable simply because the trustor (your mother) has conveyed her interest into a living trust. When the trustor dies, the property is already in trust, and the trustee would have an obligation to continue to pay the payments on the loan. A conveyance out from the trust, such as a distribution to one of the beneficiaries may trigger the due on sale clause.