Probate Loans, Estate Loans, Trust Loans, Inheritance Loans 2018-04-18T08:58:59+00:00

Probate Loans, Estate Loans, Trust Loans
& Inheritance Loans in California

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California Probate Loans, Estate Loans, Trust Loans & Inheritance Loans

North Coast Financial offers California probate loans, estate loans, trust loans and inheritance loans to heirs and beneficiaries in need of short-term financing when refinancing inherited property (real estate only). Based in California, North Coast Financial are probate loan lenders with over 37 years of lending experience, providing fast approval and funding, competitive rates and excellent customer service. Contact North Coast Financial now to get your probate estate loan funded fast.

Probate loans, estate loans, trust loans and inheritance loans are short-term loans against real estate assets within an estate which are currently illiquid. This type of loan is often referred to as a probate advance or inheritance advance. The estate may be going through the probate or trust administration process or the heirs of the inheritance may wish to quickly divide their ownership of property within the estate.

North Coast Financial provides probate, estate and trust loans in Los Angeles, San Diego, Orange County, Riverside, Ventura, San Francisco Bay Area, Sacramento, San Bernardino and various other counties throughout the state California.

*North Coast Financial is only able to provide loans against the real estate within an estate/trust and the real estate must be located in California.

Why Choose North Coast Financial?

Recent Probate, Estate, and Trust Loans Funded by North Coast Financial

  • San Jose California Trust Loan

Recent Deal – San Jose California Trust Loan

San Jose California Trust Loan North Coast Financial funded for a $760,000 trust loan in San Jose, California. The loan amount of was secured [...]

  • Gardena Hard Money Refinance Loan

Recent Deal – Gardena Hard Money Refinance Loan

Gardena Hard Money Refinance Loan A hard money refinance loan in Gardena, California was financed by North Coast Financial. The loan amount of [...]

  • Anaheim Hard Money Refinance Loan

Recent Deal – Anaheim Hard Money Refinance Loan

Anaheim Hard Money Refinance Loan North Coast Financial provided funding for a $274,000 hard money refinance loan in Anaheim, California. The loan amount [...]

  • Pasadena Hard Money Refinance Loan

Recent Deal – Pasadena Hard Money Refinance Loan

Pasadena Hard Money Refinance Loan North Coast Financial provided funding for a $310,000 hard money refinance loan in Pasadena, California. The loan amount was secured [...]

  • Walnut Cash Out Refinance Loan

Recent Deal – Walnut Cash Out Refinance Loan

Walnut Cash Out Refinance Loan Financing was provided by North Coast Financial for a hard money refinance loan in Walnut, California (Los Angeles [...]

Probate Loans, Estate Loans & Trust Loans for Heirs & Beneficiaries

Probate Loans Against an Estate

The assets from an estate cannot be distributed to heirs until after the probate process is completed. Probate can last anywhere from 6 months to 3 years. During this lengthy process, heirs may find themselves in a situation in which they need to borrow against the estate property and receive an inheritance advance (probate advance). Probate loans allow an heir to borrow against real estate within their inheritance until the probate can be settled.

Probate Loans to Satisfy Estate Obligations

During the probate process, the heirs may need a probate advance to obtain funds to take care of numerous financial obligations related to the estate such as paying for funeral costs, legal expenses, making mortgage payments, paying property taxes, settling debts or claims on the estate, making repairs to properties or buying out or paying off other heirs. An estate loan allows the heir to quickly borrow against real estate within the estate and receive funds to satisfy various immediate obligations of the estate. Loans against probate real estate assets can provide heirs and beneficiaries with some much needed breathing room during a difficult time.

How to Refinance an Inherited Property to Buy Out Heirs

When heirs inherit property a problem frequently arises when one heir wants to maintain ownership while other heirs wish to sell their interest in the inherited property for cash. The heir who wants to keep the property may not have enough cash to simply pay off the other heirs so they must pursue an option for refinancing the inherited property.

Refinancing inherited property typically cannot be done by a traditional lender such as a bank or credit union. The title to the inherited property is often in the name of the trust or estate. Because the title of the property is not in the borrower’s name, getting a mortgage on an inherited property from a bank will be extremely difficult or impossible. Banks generally aren’t interested in refinancing a property with multiple heirs.

The solution to this problem is working with a hard money lender who understands how to refinance an inherited property to buy out heirs. Prior to refinancing the inherited property, the heirs must agree on the current value of the inherited property and determine the amount of cash each heir will receive for their buy out.

Experienced direct hard money lenders such as North Coast Financial have the ability to provide heirs with loans against the equity within their inherited property (real estate). These loans have numerous different names such as 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 on inherited property.

Hard money lenders are able to refinance inherited property as they can make the loan directly to the trust or estate and have the borrower (heir) assume the loan. The loan proceeds are distributed to the heirs receiving the buy out for selling their share of the inherited property.

When the refinance of the inherited property is complete, the borrower/owner will be able to transfer title of the property into their name and apply for a bank loan to obtain a lower interest rate and longer loan term.

Inherited House with No Mortgage vs Inherited Property with an Existing Mortgage

Inheriting a house with no mortgage is the ideal situation as it provides larger equity distributions for the heirs. In a situation where the heirs have inherited property with an existing mortgage, the existing mortgage will need to be paid off, unless the heirs only are only in need of a small 2nd loan behind the 1st. The amount of equity available to the heirs will be reduced by the current balance of the existing loan.

Trust Loans to Beneficiaries

Preserving the Assessed Tax Value of the Property

Trust loans to beneficiaries allow heirs to obtain a short-term loan against real estate with the loan proceeds going towards satisfying one of the heir’s interest in the trust. Then the property can subsequently be deeded to the other heir who wishes to maintain ownership of the real estate. There may be favorable tax and property tax benefits when property passes from a parent to a child so a tax professional or attorney should be consulted.

The goal of this type of favorable tax transaction is to have the property pass from the parent’s trust to a child (while paying off one or more beneficiary’s interest) in such a way that does not cause a reassessment of the property value. Maintaining the existing tax assessment value may save the beneficiary thousands of dollars each year in the form of lower property taxes. This yearly savings makes the trust loan an excellent investment.

*Note: Current California regulations may allow a reassessment exemption when property is transferred from a parent to a child or grandchild. Regulations in other states may vary.

Trust Loans to Beneficiaries – An Example

If a trust distributes to two children (trust beneficiaries) and then one of the children acquires the other 50% ownership from the sibling, the property can be reassessed (at least to the 50% interest being acquired) since the transfer from one sibling to another is not exempt.  However, if a trust loan is made to the trust and one sibling receives cash while the other sibling receives the property (100%) from the parent’s trust, then the transfer should be seen as exempt (transfer from parent to child).

Experienced trust loan lenders such as North Coast Financial are able to make the loan to the trust and then make an exception to allow one of trust beneficiaries to assume the loan. Once the title is transferred to the heir receiving the property, the owner can then refinance to a less expensive conventional loan.

Probate, Estate and Trust Loans – Not Available from Conventional Lenders

Conventional lenders such as banks and credit unions are generally not able to provide estate, inheritance, trust or probate loans in Los Angeles or other areas within California. These types of loans require additional documentation and legal knowledge which most banks and credit unions do not possess. Conventional lenders also cannot make a loan to an estate, probate or trust and then have another party immediately assume the loan.

Experienced estate and probate loan lenders such as North Coast Financial have the expertise and flexibility to the make the loan to the estate or trust and then allow the heir to assume the loan and take title to the property.

Reverse Mortgage Refinancing for Heirs

North Coast Financial is also also to provide reverse mortgage refinancing to heirs who wish to maintain ownership of a inherited property that has an existing reverse mortgage. Conventional lenders will not refinance reverse mortgages for heirs but direct hard money lenders can provide this type of funding. A loan can be made to the estate which can then be assumed by the heirs. This allows for the heirs to maintain ownership of the property, have the title of the property transfer into the heir’s name and prevent a reassessment of the property value which can save thousands of dollars in property taxes each year (consult a tax professional or attorney).

Contact North Coast Financial Today

North Coast Financial funds probate, estate and trust loans against real estate in Southern California, Northern California and Central California. Specializing in the areas of Los Angeles, Orange County, San Diego, Riverside, San Bernardino, Ventura, San Francisco Bay Area, Sacramento and other counties throughout California.

Contact North Coast Financial now and have your probate, estate, trust loan or inheritance advance funded quickly.

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Probate, Estate and Trust Loan Frequently Asked Questions

What estate, probate or trust loan financing options are available for beneficiaries?

For estates, probates or trusts that contain California real estate, beneficiaries may borrow up to 65-75% of the current value of the property. These short-term loans are generally available for terms of up to 1-3 years.

Will an estate loan allow for an exclusion from reassessment with a Parent to Child transfer or Grandparent to Grandchild transfer?

This is a common reason beneficiaries choose to obtain an estate loan from a hard money lender. Preserving the existing property assessment value can potentially save the beneficiary thousands of dollars in property taxes each year going forward.

Title of the property can transfer from the estate to the beneficiary who intends to hold title and cash is distributed to the beneficiary(s) who wish to transfer their interest in the property to the other beneficiary(s). This process can allow for a proper transfer of title from Parent to Child (or Grandparent to Grandchild) which can exclude a reassessment. Prior to taking such action it is advised that the borrower consult with an attorney or CPA to verify that the Parent to Child property tax exclusion will apply to their specific circumstances.

More information on transfers between parent and child (Proposition 58) and grandparent and grandchild (Proposition 193)

Can a beneficiary still receive an estate loan if the property has a reverse mortgage?

North Coast Financial can help heirs refinance a reverse mortgage.

The reverse mortgage would have to be refinanced. If the property has enough equity, a larger loan amount beyond the current balance of the reverse mortgage can be considered in order to provide the beneficiary with cash out.

Who is permitted to borrow against real estate within an estate or trust?

Trustees and beneficiaries may be permitted to borrow against real estate in the trust or estate. The estate or trust must allow for borrowing against its assets. The trustee, successor trustee, estate administrator or executor must allow for the loan to take place.

All beneficiaries of the estate or trust must also provide their consent for the loan to be taken out.

What is necessary to qualify for a California estate or trust loan?

Besides having the legal authority and permission from other parties related to the estate/trust, the beneficiary must also qualify for the loan by filling out a standard loan application.

While the primary focus of the loan approval is on the value of real estate being used as collateral, the beneficiary must demonstrate that they have the financial ability to make the necessary monthly loan payments while the loan is outstanding.

The application requires information such as the beneficiary’s income and existing assets and debts. The beneficiary’s credit may be considered but likely will not prevent the loan from being approved, even if they currently have poor credit.

Will a bank or credit union provide a beneficiary with an estate, probate or trust loan with real estate as collateral?

Banks, credit unions and traditional mortgage companies are generally not able to provide estate, probate or trust loans as these types of loans are often considered too risky and do not fall within their strict guidelines. These types of traditional lenders are typically not able to provide a loan to an individual when the title to the property is not in their name.

Private money lenders with experience funding these specialized types of loans are able to make the loan directly to the trust or estate and then have the beneficiary assume and personally guarantee the loan.

Are beneficiaries with bad credit scores able to qualify for estate, probate, or trust loans?

Beneficiaries with poor credit, bad credit or other financial issues can still receive an estate or trust loan from a hard money lender. Hard money lenders are primarily concerned with the value of the real estate.

How long does it take to receive funds when receiving an estate, probate or trust loan?

It generally takes 1-2 weeks for the loan to be funded and the beneficiary to receive their funds. This is assuming there are no major title issues with the property and all disclosures and documents are signed and returned by the beneficiary in a timely manner. In certain situations the closing could take longer due to federal regulations and potential issues with the borrower’s title to the property.

North Coast Financial Probate, Estate and Trust Loans Program

  • Probate, Estate, & Trust Loans Program

Loan Application Approval TimelineSame day approval available
Time to Fund LoanAs few as 3-5 days if needed
Property TypesSingle family, multi-family, commercial, industrial
Loan Amounts$30,000 – $3 Million+
Loan Terms6 to 36 months
Lien Position1sts & 2nds
Loan to Value (LTV)1sts – Up to 75% of current value  2nds – Up to 65% CLTV
FeesNo appraisal fees (in most situations) and no hidden junk fees
Estate Loan Interest Rates and PointsPlease contact us for information on current rates and points
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