by Ismael Frederick | November 23, 2017 7:30 am
There are so many different types of loans and sometimes it can be very confusing trying to know which loan is which or which loan to apply. Today, we will find out about probate loan and who can apply for this loan.
Probate loans is also known as estate loans or trust loans and these are short term lending loans. When a person passed away, the transferring and distributing process of his or her estate according to the will made, will take quite a long time. Sometimes, the process may drag on from one to a few years. During the administration process, the estate’s executor will need to pay the funeral expenses, property taxes, discharge debt, etc. All these have to be paid in cash and sometimes there may not be enough cash and that is when a probate loan or an estate loan is required to help the family of the deceased settle the expenses.
Most traditional financers do not offer probate loans to trusts and estates in probate because these are short term loans and the assets are tied up during the probate administration process. Probate loans are used to finance the immediate needs while waiting for the completion of the estate administration process. Once the process is completed, a mortgage loan can be secured and the probate or estate loan can be paid back.
Sometimes, a real estate property is left to two or three siblings and one of the siblings want to buy over the whole property from the other two siblings who are willing to sell off their share of the property. Instead of waiting for the whole process of the estate administration to complete, a probate or estate loan will come in handy to pay the two siblings their share. In this way, the one who takes over the property will get to enjoy favourable tax and property tax benefits e.g. without reassessment of the property value that could save the new owner a large sum of money. The regulations on reassessment exemption when property is transferred from a parent to a child or grandchild may vary from state to state.
Usually, the probate loans California will be able to structure each loan accordingly to fit the specific need of the borrower. Upon receiving the probate loan, the family is able to use the money in preparing the property for sale, paying of taxes, and clearing of whatever debts that need to be paid.
One can learn more about probate loans by checking out online. Internet is a great source today for gaining knowledge about any topic and if taking about loans of any type you can surely gain much of the information in order to know what it is all about and how to go ahead for it when needed.
Source URL: https://betacash.org/probate-loan-for-the-inheritor/
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