Los Angeles, CA asked in Foreclosure, Probate and Real Estate Law for California

Q: Can a court ordered receiver take a loan on a paid off house where the homeowners are both dead? And probate case opend

Our house is taken in Norwalk California under health and safety code violations to a receivership where the receiver pulled out equity loans cuz house was paid off for over 50 years myself my mom lived in the property as successors and errors we opened a probate case to protect them from taking us out of the house which it didn't happen they took all of our personal possessions and the house the receiver took out loans based on my grandparents information then didn't pay the loans and the house fell into foreclosure where it's sold at not fair market value because it was during covid and the actual place that sold was closed because of the stay-at-home orders anyways I want to know if there's anyone that could check out some information and get back to me one can they pull out a loan based on the house still being in my grandparents name and they were both dead while there was an active probate case opened is it lawful for the receiver to allow the house to fall into foreclosure

1 Lawyer Answer
James L. Arrasmith
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  • Probate Lawyer
  • Sacramento, CA
  • Licensed in California

A: In California, a court-appointed receiver has the authority to take various actions concerning property under their control, which can include taking out loans against the property to pay for repairs or to maintain the property.

However, this power must be granted by the court order that appoints the receiver. The actions of a receiver are typically overseen by the court, and any loans taken would generally require court approval, especially if it involves an estate in probate. If the homeowners are deceased and the house is part of an active probate case, the receiver should be managing the property in the best interest of the estate and its beneficiaries.

If a receiver has allowed a property to fall into foreclosure, especially under questionable circumstances, beneficiaries or interested parties have the right to raise these issues in the probate court.

It may be necessary to review the court's orders regarding the receivership, any actions taken by the receiver, and the oversight exercised by the court. If there has been mismanagement or impropriety, it may be possible to seek redress through legal proceedings.

Engaging a lawyer with experience in probate and real estate law would be a critical step in reviewing the receiver's actions and the sale of the property to determine if they were appropriate and lawful.

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