A probate loan is one that refers to the amount of money borrowed against a probate asset. A probate asset is one that is inherited from a decedent. The court looks at the assets and the liabilities of the decedents. It then complies with their last wish on how the probate estate should be shared. Thus, probate is a process that helps to oversee the distribution of an estate. It also determines how payments of any liabilities will be made. Unfortunately, it takes time to have the assets determined and distributed. Also, they must be distributed according to the decedent’s last will. So, some money may be required before the estate is distributed. This is where Probate Advance loans come in. They are loans secured by the probate estate.
Here are some of the frequently asked questions on using a probate loan.
Q1. What is the role of an attorney when a client seeks a probate loan?
The attorney needs to assist in discussing with the lender on the loan’s specifics. They include how the finance will assist the client. Besides, the attorney should help the client obtain a written buyout agreement from the parties affected. Also, they should help them obtain a statement prepared by the escrow on costs and fees. The attorney may help in completing the necessary steps as directed by the court action.
Q2. Can one secure an equity-based loan?
This is a good question that helps to determine the type of financing that one gets. The equity-based loan attracts the lowest fees and comes with low-interest rates. But this type of lending is outside the guidelines. Also, an equity-based loan is a specialized loan. It requires finer details that can only be provided by a qualified probate loan company.
Q3. Can a low credit score stop one from getting a probate loan?
No, credit scores do not count in probate loans. The lender may only be interested in the assets or property equity and the court guidelines.
Q4. How long does it take before one can obtain a probate loan?
It all depends on where you are sourcing the loan from and the paperwork involved. But if your papers are in order and there is proper advice from the attorney it can take a shorter duration. Typically, it should take up to 14 days after you place your formal request for the loan. This is only possible if you provide all the necessary documents on time.
Q5. What should one do if they are planning to take a probate loan?
If you are planning to take a probate loan, you need to seriously think about it. Also, you should take your time to evaluate if it is the right thing to do. Look at the other options available before you make your final decision. You may need to consult a financial advisor or a professional. They will guide and help you understand the process. They look at the financial and legal aspects of the decision you will be making. Besides, they will help you understand the value of the real estate you are eligible to and the duration it may take before you receive your share. Lastly, you should notify the administrator of the estate. It will allow them to think about what you intend to do and provide some guidelines.