Detailed answer — how mortgages and utilities are handled during California probate

1. Who is responsible for mortgage and utility payments?

When someone dies, debts remain obligations of the decedent’s estate. The person appointed by the probate court (the executor or administrator, often called the personal representative) has the duty to manage estate assets and pay valid estate debts from estate funds. That includes secured debts such as a mortgage and ongoing obligations like utility bills tied to estate property.

2. Mortgage payments

– The mortgage lender still expects payments. Death does not eliminate the mortgage. If payments stop, the lender may begin nonjudicial foreclosure under California’s foreclosure statutes (see California Civil Code § 2924: Cal. Civ. Code § 2924).

– The personal representative can and usually should pay the mortgage from available estate funds to protect estate property and preserve value. If the estate lacks sufficient liquid assets, the representative has several options:

• Seek court authorization to use estate funds or to borrow on behalf of the estate.
• Negotiate with the lender for forbearance, loan modification, or a temporary repayment plan.
• Sell the property through the probate process (court-supervised sale or sale under Probate Code authority) to pay off the mortgage.
• Allow foreclosure to proceed if the estate cannot pay and there is no buyer — secured creditors have priority and may enforce the security.

– Important: heirs and beneficiaries are generally not personally liable for a mortgage just because they inherit property, unless they co-signed the loan or otherwise personally guaranteed it. The lender’s recourse is primarily against the property (and then against the estate if applicable).

3. Utilities (electricity, gas, water, phone, cable, internet)

– Utilities are contractual obligations of the account holder. If services remain in the decedent’s name and bills go unpaid, companies may disconnect service. To prevent shutoff to occupied estate property, the personal representative should:

• Contact each utility provider promptly and explain the situation.
• Request to transfer the account into the estate’s name or into a successor owner’s name (surviving joint tenant or purchaser).
• Provide required documentation (death certificate and letters testamentary or letters of administration if requested).
• Arrange payment from estate funds or set up short-term payment arrangements while the estate is administered.

– If a utility account is jointly held (e.g., joint tenant or joint account with right of survivorship), the surviving joint account holder usually becomes responsible and the service typically continues in their name.

4. Priority of claims and what gets paid first

– In probate, secured claims (like mortgages and property tax liens) are generally paid out of the assets securing them before unsecured claims. The personal representative must follow statutory procedures for notifying creditors and paying valid claims in the proper order under California probate rules. If estate funds are limited, secured creditors may be paid at the expense of unsecured creditors or beneficiaries.

5. What if the estate has no money to keep paying?

– If the estate is insolvent (debts exceed assets), the personal representative must follow insolvency procedures under probate law. Secured creditors can enforce their security interests (e.g., foreclose on the property). The representative should communicate with lenders and utilities to try to avoid sudden loss of services or property, and should seek court guidance when appropriate.

6. Practical court tools and options

• Petition the probate court for authority to borrow, sell property, or pay specific debts when estate cash is insufficient.
• Ask the court to approve a sale of real property to satisfy a mortgage or distribute proceeds to heirs.
• Use a court-supervised sale process if required by the will or by law.

7. Where to find official information

For general probate procedures and self-help resources, the California Courts provide reliable information: California Courts — Probate. For foreclosure law and lender remedies, see California Civil Code § 2924: Cal. Civ. Code § 2924.

Disclaimer: This is general information only and is not legal advice. It does not create an attorney-client relationship. For advice about a specific situation, contact a licensed California attorney who handles probate and estate matters.

Helpful hints — steps to protect estate property and maintain utilities

• Open communication: Immediately contact the mortgage lender and utility providers. Ask about options and what documentation they need.
• Obtain letters testamentary or letters of administration quickly so companies will treat you as the authorized representative.
• Prioritize payments: pay mortgage, property taxes, and insurance to avoid foreclosure or loss of coverage.
• Maintain insurance: keep homeowner’s insurance current to protect estate value.
• Consider temporary solutions: short-term forbearance, loan modification, or a court-authorized sale of the property.
• Keep records: document all communications, offers, payments, and court filings related to mortgage and utilities.
• Don’t assume heirs are personally liable: confirm whether heirs co-signed debt before making payments from personal funds.
• Seek counsel early: a probate attorney can help negotiate with lenders, petition the court for authority, and advise on insolvency matters.
• If property is vacant, secure it: prevent vandalism or damage that could increase costs (board up, maintain utilities minimally, continue insurance).