Beneficiaries of an estate or trust often find themselves in scenario where they have inherited property along with siblings. The siblings usually want to split the interest in the real estate as one or more siblings may want to keep the real estate while others just want cash in for their interest in the inherited real estate. This type of situation often leaves the beneficiaries trying to figure out how to buy out a sibling on shared property. Siblings typically do not have sufficient cash on hand to just pay out the others siblings.

In many of these situations, the inherited real estate is held in an irrevocable trust or an estate. Traditional lenders are not able to lend against real estate currently owned by an irrevocable trust or estate. The siblings will need to obtain short-term financing from an irrevocable trust loan lender or a probate loan lender that can lend directly to the irrevocable trust or estate. The loan proceeds are paid directly to the estate or trust and the cash can then be used to buy out the other siblings. Once the siblings have received their cash, the title of the real estate can be transferred into the name of the individual(s) who will own the property going forward.

After the property title has been transferred to the individual, a traditional lender will then be able to provide a conventional refinance loan. The conventional refinance will automatically pay off the short-term estate or trust loan that was previously recorded against the real estate.

North Coast Financial is an experienced trust/probate/estate loan lender that provides financing throughout the state of California.

North Coast Financial, Inc.
2424 Vista Way #202
Oceanside, CA 92054
760-722-2991
jeff@northcoastfinancialinc.com