If you have ever inherited money from a relative, you know that probate can be a very time-consuming process. It can also be expensive. Sometimes you have to spend a lot of money before you can have access to the money you inherited. Probate estate loans are a good solution if you own real estate. Real estate investment loan allow you to have access to money very quickly. The pros of probate loans with North Coast Financial do not end there, though.
Probate Loans Are Not for Everyone
Probate loans, also known as estate loans or trust loans, are very similar to hard money loans. In other words, they require a piece of real estate as collateral. The amount of the loan is usually about three quarters of the value of the real estate property. The term of repayment of a probate loan also tends to be short. The difference between probate loans and other hard money loans is that the piece of real estate securing the loan is part of a deceased person’s estate.
Probate Loans Can Help You Avoid Family Disputes
Sometimes a parent bequeaths a piece of real estate, usually the family home, to all the children. Of course, it is usually not practical for grown siblings, each with their own children, to live together in their deceased parents’ home. One sibling, who wants to live in the home, usually buys the shares of the other siblings. A probate loan makes it easy to get the cash quickly and pay your siblings the cash equivalent of their shares of the family home. You can then move forward with selling or renovating the house.
Probate loans make it easier for siblings to avoid conflicts over family real estate that they have inherited.