Probate, Estate & Trust Loans for Attorneys & Fiduciaries
Hard Money Lenders Arizona works directly with attorneys and fiduciaries who need to borrow against real estate on behalf of a client’s estate or trust. We assist administrators, trustees, and executors in need of fast funding for short-term loans against an estate or trust. The borrowed funds can used to pay attorney fees, pay off other heirs and siblings, pay taxes, settle debts or handle any other obligations of the trust or estate. A probate attorney, administrator, executor, trustee or beneficiary can initiate the request to obtain the probate or estate loan.
How to Refinance an Inherited Property to Buy Out Heirs
When there are multiple heirs who inherit a property, problems can arise when one heir wants the keep the property while the remaining heirs want to sell it. If the heir who wants to keep the property does not have enough cash to buy out the other heirs, they can take out an estate loan to get that cash fast and easy to solve this issue. Typically, this kind of refinancing can not be approved by a conventional bank or credit union. The title to the property is not in the borrower’s name. Instead, the title is in the name of the estate or trust. This makes it very difficult to secure a mortgage with a bank because they are not interested in refinancing a property that belongs to many heirs.
The solution is to work with Hard Money Lenders Arizona to refinance the property and buy out the other heirs. It’s important to note that before refinancing the inherited property, all heirs must agree upon the value of the property and the amount of cash each heir will receive during the buy out.
Experienced direct hard money lenders such as Hard Money Lenders Arizona have the ability to provide heirs with a home equity loan on an inherited real estate property. This type of loan has many names, including probate loans, probate estate loans, probate real estate loans, estate loans, trust loans, estate inheritance loans, inheritance loans and inheritance property refinance loans. These loan types all provide the heirs with a cash out refinance option on inherited property.
These loans are funded quickly and are made directly to the trust or estate and have the heir who wants to retain the property assume the loan. From here, the proceeds are then distributed accordingly to the heirs who wish to be bought out. Once the inherited property refinance is complete, the title of the property is transferred to the borrower of the loan. The borrower can then refinance with a conventional lender for a longer-term loan at a lower interest rate.
Inherited House with No Mortgage vs Inherited Property with an Existing Mortgage
When an heir inherits a property without a mortgage, this allows for larger equity distributions for the heirs who want to be bought out. On the other hand, when heirs inherit property with an existing mortgage, it needs to be paid off first. The amount of equity available to the heirs will be reduced by the current balance of the existing loan.
Mortgage Loan Originator
NMLS ID: 370470
AZ MLO License: 0923102
2168 E. Williams Field Road, Suite 245
Gilbert, AZ 85295
NMLS ID: 181106
AZ License: MB-0904774
40 N. Central Avenue, Suite 1400
Phoenix, AZ 85004
NMLS ID: 1421237
AZ Branch License: MBBR-0120728