Mortgage time limitations.

[mudflats]

What is the name of your state (only U.S. law)?

California.


1987 mortgage taken out. No payments made.

1995 the mortgagee dies.

2004 mortgagor dies.

2007 letters of administration granted on mortgagee's estate.

2009 heirs about to inherit mortgagors land with mortgage on it.

Is the mortgage still valid?

Thanks

[FlyingRon]

Why wouldn't it be?
The heirs of the mortgagor aren't responsible for the loan, but the secured property is still subject to the mortgage so they have the choice of paying it or losing it to a foreclosure. The heirs of the mortgagee get the mortgage as an asset and can expect to collect and possibly foreclose on it.

[HomeGuru]

Originally Posted by mudflats

What is the name of your state (only U.S. law)?

California.


1987 mortgage taken out. No payments made.

1995 the mortgagee dies.

2001 mortgagor dies.

2004 letters of administration granted on mortgagee's estate.

2009 heirs inherit mortgagors land with mortgage on it.

Is the mortgage still valid?

Thanks

**A: yes, the mortgage is still valid up until such time a the court says it's not.

[JudyH608]

You may want to look up Federal laws governing mortgages. My best guess would be the mortgage is valid and the monies will come out of the estate before the inheritance is split to the heirs. Death does not negate the balance owed to any creditors... mortgage or otherwise.

Best wishes.

Originally Posted by mudflats

What is the name of your state (only U.S. law)?

California.


1987 mortgage taken out. No payments made.

1995 the mortgagee dies.

2001 mortgagor dies.

2004 letters of administration granted on mortgagee's estate.

2009 heirs inherit mortgagors land with mortgage on it.

Is the mortgage still valid?

Thanks

[mudflats]

Thank you for your replies.

Now I am getting greedy. Currently the will has not been granted to anyone, can we foreclose and sell the property and keep the equity?

Also, can we use the clause that the mortgagor paid nothing on this mortgage until his death nearly 10 years after the mortgagee's death (intestate) as grounds that the contract was broken and cannot be resumed by the heirs?

I'm trying to find a way to get the property title and not just what is owing on it.

The property is a commercial lot and the persons involved in this are all inheritors! so we are not talking about ousting the eldery!

[seniorjudge]

If you own the loan, then you may foreclose.

[seniorjudge]

Originally Posted by JudyH608

...
You may want to look up Federal laws governing mortgages.
...

Why?

And what laws?

[mudflats]

Does foreclosure mean you gain sole right to the title deeds of the land and can sell it for it's current market value?

This is a private mortgage on a commercial property, not a bank mortgage on a home.

Because the first thing the inheritor of the will is going to do is ask for time to pay the mortgage or just pay it outright.

Do we have to accept that?

[tranquility]

Although the term "mortgage" is used in California, we don't really have them here. This is a trust deed state. That means, in part, the deed is held by a third party until the underlying conditions are fullfilled for the trustee to turn over the deed.

While I believe a "mortgage" will be good no matter how much time elapsed, I am certain that if the conditions under the trust deed have not been fullfilled, it is still in force.

[seniorjudge]

Originally Posted by tranquility

Although the term "mortgage" is used in California, we don't really have them here. This is a trust deed state. That means, in part, the deed is held by a third party until the underlying conditions are fullfilled for the trustee to turn over the deed.

While I believe a "mortgage" will be good no matter how much time elapsed, I am certain that if the conditions under the trust deed have not been fullfilled, it is still in force.

Some states (and I do not know about CA) have laws that 30 years (or whatever) after the last payment was due, then the mortgage/dot is unenforceable.

[seniorjudge]

Q: Does foreclosure mean you gain sole right to the title deeds of the land and can sell it for it's current market value?

A: It means you will own the real estate; its current market value is irrelevant in a foreclosure. A foreclosure does not necessarily mean you have good title. Before you take any other steps, have a title company run a title history on the place.


Q: Do we have to accept that?

A: It would depend on the terms of the mortgage/dot.

[JudyH608]

I think you'll have greater success with taking this to the probate court involved with the estate of the deceased. There's a time limit that creditors and others must file to probate court against an estate for a claim on monies/property. Because probate court is involved, I would doubt you can foreclose on the mortgage as nothing was done prior to the death, and now everything is on hold and being dealt with in stages by the judge and attorneys involved. All accounts have been frozen and companies such as credit card, loans, etc. have stopped incurring interest and late fees. The attorney for the estate already has a plan of action for the family and that attorney has already researched what properties, assets and debts the deceased had. If you are owed money or the property, you must file a claim in probate against the estate. The probate judge will hear your claim and he will make the decision, though be assured the attorney for the estate will argue whatever he sees for achieving the greatest value for the estate... especially if there's a will involved, because it would be in the best interest of the deceased and what the deceased would've wanted to leave for his/her heirs.

Best wishes.

Originally Posted by mudflats

Does foreclosure mean you gain sole right to the title deeds of the land and can sell it for it's current market value?

This is a private mortgage on a commercial property, not a bank mortgage on a home.

Because the first thing the inheritor of the will is going to do is ask for time to pay the mortgage or just pay it outright.

Do we have to accept that?

[seniorjudge]

Originally Posted by JudyH608

I think you'll have greater success with taking this to the probate court involved with the estate of the deceased. etc.

Read the first post in this thread.

[JudyH608]

Doesn't the probate judge have the final say, because he is making final decisions for the deceased property, assets and debts? The deceased cannot be served foreclosure papers. All claims must be filed in probate, then the judge will hear arguments regarding the monies/property involved. My thought would be a judge would allow the family of the deceased to pay off, but most likely it would have to be done before the estate was settled.


Judy

Originally Posted by seniorjudge

Q: Does foreclosure mean you gain sole right to the title deeds of the land and can sell it for it's current market value?

A: It means you will own the real estate; its current market value is irrelevant in a foreclosure. A foreclosure does not necessarily mean you have good title. Before you take any other steps, have a title company run a title history on the place.


Q: Do we have to accept that?

A: It would depend on the terms of the mortgage/dot.

[JudyH608]

I have read it and I think you should take another look. Because there's a deceased involved, this is now in probate and it won't matter a wit about time limitations on a mortgage when nothing was done while the person was alive. A probate judge can and does make all decisions on who gets what and when from the deceased. From the post it sounds like the deceased has title or rights to the property, so if there is recourse for the OP, the only way is through probate.

Judy

Originally Posted by seniorjudge

Read the first post in this thread.