Orange County Living Trusts: Eight Vital Steps to Avoid Foreclosure. As you begin the process of administering an Orange County living trust, it is vital that you act quickly with regard to any real estate that is held in the trust. If this real estate is encumbered by a mortgage, it is important to note that the mortgage must continue to be paid. Failing to continue to make mortgage payments could result in the lender initiating foreclosure proceedings. If the property is lost to foreclosure, the trust may lose valuable equity in the property.
What should you do if you are the trustee of a living trust in Orange County that holds real estate subject to a mortgage? Consider the following:
- Contact an experienced California trust attorney right away for guidance. The period for a foreclosure may be quicker in California than in many other states. Every day that you wait to act could cost the trust substantially.
- Obtain a copy of the deed and the mortgage instrument. These documents are part of the public record.
- Determine the mortgage loan balance.
- Obtain an appraisal of the value of the real estate.
- Assess whether there are available funds in the trust to pay the expenses.
- Carefully review the terms of the trust to determine whether there are specific instructions as to how the mortgage is to be paid and when the real estate is to be given to the beneficiaries.
- Contact the lender, and notify them of the decedent’s death. You should also inform them of your contact information, as well as your intent to sell, rent, distribute, or hold the property.
- If there are insufficient assets in the trust to pay the mortgage, and the trust is responsible to make these payments, negotiate with the lender to try to delay any foreclosure proceedings. Some lenders will refuse to bend, while others may be more inflexible.
Orange County Living Trusts: Eight Vital Steps to Avoid Foreclosure. With so much at stake, it is important that you act quickly and with proper guidance. Contact an experienced Orange County trust lawyer today for assistance administering a trust with real estate. Call our office at (714) 282-7488for a consultation.