Legal Question in Wills and Trusts in California

No a probate filing does not stay secured creditors. You are confusing it with bankruptcy. Nor can an estate file bankruptcy to stop foreclosure. In the right financial circumstances, you may be able to get a bridge loan to to sell the real estate and complete the probate case. On such lender is www.inheritancefunding.com

Unfortunately, no. Probate does not stay payment of amounts owed to secured creditors; they have to be paid as the debts come due (that is, the monthly payments must continue to be made). You have three potential options. First, you can let the property go to foreclosure in which case all equity in the property will be lost. Second, the beneficiaries of the estate can transfer their own money to the estate (or borrow money to do so) to bring the mortgage current and to make monthly payments as they come due during the probate proceedings; when probate ends, the property will be distributed to the beneficiaries and they will have to continue to make monthly payments until they sell the property or fully pay the mortgage. Third, the executor of the estate can sell the property during probate but do so before the lender forecloses.

Some lenders may actually make a loan to the probate estate. One such entity you may contact is Budget Finance Company. 1-800-225-6267 www.bfcloans.com

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