Can I Refinance a Mortgage on a Probate Property in Los Angeles?

Yes, you can refinance a mortgage on a probate property in Los Angeles — but only under specific legal and procedural conditions. The personal representative (executor or administrator) must be officially appointed by the court and receive authorization to refinance. Additionally, refinancing during probate often requires court approval, especially if it affects the estate’s financial standing or the rights of heirs.

Can a Probate Property Be Refi'd in California?

Yes, but there are serious limitations. In California probate, a refinance is considered a transaction affecting estate assets, and therefore it’s subject to strict oversight.

You’ll typically need:

• Court-appointed authority (full authority makes the process easier)

• A court-approved reason for refinancing

• Lender cooperation, since not all banks refinance properties in probate

• A valid purpose, such as paying off existing debts, saving the home from foreclosure, or buying out other heirs

When Would You Want to Refinance a Probate Property?

Refinancing can make sense in a few scenarios:

• ✅ The estate is facing foreclosure and needs urgent funds

• ✅ One heir wants to keep the home and buy out the others

• ✅ You want to reduce high interest rates on an existing loan

• ✅ The estate has equity but needs liquidity for legal fees or taxes

But timing is everything. If the probate is early in the process or if the court hasn't granted authority yet, refinancing isn’t an option.

Who Can Refinance a Property in Probate?

Only the court-appointed personal representative (executor if there's a will, administrator if not) can legally refinance a probate property — and even then, they often need:

• Full authority under the Independent Administration of Estates Act (IAEA)

• Or specific court approval if they only have limited authority

Heirs or beneficiaries cannot refinance the property unless they’ve inherited it and title has transferred into their name.

What Kind of Loan Can You Use to Refinance During Probate?

Here are the most common options:

1. Estate-Level Hard Money Loans

• Short-term funding secured against the property

• Useful for urgent needs like foreclosure avoidance

• Higher rates and fees, but quicker processing

2. Conventional Refinance Loans (Post-Distribution)

• Traditional mortgages through banks

• Only possible once title has transferred out of probate

• Requires strong credit and income from the new owner

3. Heir Buyout Loans

• One heir refinances the property into their own name

• The funds are used to pay off siblings or other heirs

• Often arranged during the distribution phase

Does the Court Always Need to Approve the Refinance?

Not always — it depends on the authority level granted to the personal representative:

Authority Type Need Court Approval? Notes

Full Authority (IAEA) Sometimes Can often refinance without

(depends on complexity) a hearing if properly noticed

Limited Authority Yes Must petition court

and get approval

If the refinance changes the value of the estate, involves conflicts among heirs, or affects creditors — court involvement is likely.

How Long Does It Take to Refinance a Probate Property?

Expect it to take 45–90+ days, depending on:

• Your court authority (limited = longer timeline)

• The lender’s probate knowledge

• Whether a hearing is required

• Whether the title has clear legal standing

In Los Angeles County, probate courts are busy — any motion for court approval can add weeks to your timeline.

Can I Refinance if the Probate Isn't Done Yet?

Yes, but only if you’re the court-appointed rep and meet lender and court requirements. If you’re just a beneficiary or family member — not yet appointed — you can’t initiate the refinance process.

Can a Refinanced Property Still Be Sold in Probate?

Yes. Refinancing doesn’t lock in ownership. If the estate refinances to pay debts or delay a foreclosure, it can still later sell the home through probate. The refinance just becomes one more item to be paid off during the eventual sale or distribution.

Local Insight: Refinancing a Probate Home in Los Angeles

In LA County, most probate homes with existing mortgages fall into one of three categories:

1. Underwater or at risk of foreclosure

2. High-equity but unprepared for sale

3. Contested by multiple heirs with different goals

We’ve helped dozens of families in each situation. In many cases, a short-term refinance or hard money solution bought the estate enough time to prepare for a sale or settle internal disagreements.

If you're unsure whether refinancing makes sense — or if you're better off just selling the home — we can help you evaluate the best path.

Contact us here to talk through your probate strategy →

Final Thoughts

Refinancing during probate can be a smart move, but it’s not always easy — and it’s rarely quick. If you’re navigating this situation in Los Angeles, it’s crucial to:

• Know your legal authority

• Work with a probate-savvy lender

• Understand how refinancing affects the estate

Whether you want to save the home, buy out siblings, or just gain time — The Borges Real Estate Team can guide you through the process.