When someone inherits property, issues may arise when one heir wants to keep ownership, but others want to sell the interest they have in the inherited property for cash. The person who opts to keep the property inherited may not have enough cash on hand to pay the other heirs or siblings, so they have to pursue an option to refinance the inherited property. A hard money lender who can provide home equity loans for inherited property is usually the easiest and fastest solution to increase cash and make it possible to buy out other heirs.
The process of refinancing an inherited property usually can’t be done by a more traditional lender such as credit unions and banks. In many cases, the title to inherited property is usually in the name of the estate or trust. Since the title of the actual property isn’t in the name of the person borrowing the money, receiving a mortgage on the inherited property from the bank or credit union is extremely challenging. Banks typically are not interested in refinancing property that has several heirs.
The most viable solution to this issue is to work with a hard money lender who fully understands how heirs should refinance inherited property to buy out other heirs. Before opting to refinance the inherited property, all the heirs have to agree on the existing value of the property and determine the total amount of cash that each heir will receive as their portion.
With an experienced direct hard money lender, Barrett Financial Group has the ability to provide heirs with a home equity loan on real estate. This type of loan actually goes by several names. You may hear of it as inheritance property refinance loans, inheritance loans, estate inheritance loans, trust loans, estate loans, probate real estate loans, probate estate loans, and probate loans. These types of loans all offer heirs a cash out refinance for inherited property.
A hard money lender can refinance all types of inherited property and provide a loan directly to the estate or trust while having the heir take on the loan. Then the proceeds of the loan are distributed to the heirs that are receiving the buy out when they sell their share of the property that was inherited. When the inherited property is refinanced is finished, the owner/borrower will transfer the title of the property into their name and apply for bank loans to get a longer loan term and a lower interest rate.