Interest rate premiums for first mortgages are typically 2.5-4% above the equivalent term conventional (“bank” type) loan. Loan fees, most of which are paid out of the loan, are based on the borrower qualifications, property condition and complexity of the file.

Loans to Executors and Administrators may take as few as 10-15 working days to close if you have full court powers and there are no objections to the loan from other persons. Otherwise, a court order must be obtained and which may take from as few as several days to several weeks or more to accomplish.

So, what can you do with mortgage financing? Here are just a few examples:

1. Pay attorney fees
2. Arrange a buy-out by other heirs
3. Resolve dispute "work-outs"
4. Provide quick funds for probate emergencies
5. Pay Medi-Cal and other creditors
6. Stop foreclosure
7. Pay delinquent taxes
8. Money for repairs
9. Pay settlements and fund other legal actions

Interest rate premiums for first mortgages are typically 2.5-4% above the equivalent term conventional (“bank” type) loan. Loan fees, most of which are paid out of the loan, are based on the borrower qualifications, property condition and complexity of the file.

Loans to Trustees and Professional Fiduciaries may take as few as 10-15 working days to close if the trust provides for powers to encumber (borrow against) the property and there are no objections to the loan from other persons. Otherwise, a court order must be obtained and which may take from as few as several days to several weeks or more to accomplish.

So, what can you do with mortgage financing? Here are just a few examples:

1. Pay attorney fees

2. Pay for elderly care or living expense
3. Arrange a buy-out by other beneficiaries
4. Resolve dispute "work-outs"
5. Provide quick funds for emergencies
6. Pay Medi-Cal and other creditors
7. Stop foreclosure
8. Pay delinquent taxes
9. Money for repairs
10. Pay settlements and fund other legal actions

1. Heirs of decedent's estates can obtain a cash advance on their inheritance now and repay the obligation when the probate closes.

2. Heirs can expect to get about a quarter to a third of their net inheritance early. Heir advances typically require 5-10 working days to fund.

3. The security doesn’t have to be real estate; it could be cash, stocks, or other liquid assets

4. Advances must be paid at the time of close of probate or sooner.

5. Advances are not loans; they are cash lump sums paid to you now, which is discounted from the amount that you repay.

What Kind of Financing Terms are Available?

The cost of this type of transaction service may be from a quarter to a half of the total amount advanced. There is no “interest rate” or monthly payments because this is not a loan

Heir loans – Well-Qualified

• Heirs of decedent's estates can use their inheritance in lieu of a cash down payment in order to borrow to purchase California real property from the probate estate.

• The maximum that you may borrow is about 75% of the current value of the property, less any existing mortgages, liens or creditor bills to the estate.

• This means that you will need to inherit at least 1/4 of the total estate or more, depending on the NET value of your inheritance.

• This will require coordinating the transfer of the property out of the estate into the borrower’s name (done in escrow) and typically requires at least some effort on the part of the Attorney and the cooperation of Executor or Administrator

What Kind of Financing Terms are Available?

The rates and terms available are comparable to bank rates for a given borrower’s credit and income. Additional fees may be charged to coordinate the Attorney and Administrator efforts, sale, transfer, escrow, title insurance company and lender requirements.

So, what can you do with financing? Here are just a few examples:

1. Pay personal debts

2. Provide quick funds for emergencies

3. Stop foreclosure

4. Pay delinquent taxes

5. Provide money for repairs

6. Get cash for future living expenses

7. Pay for education costs

8. Pay for settlements and fund other legal actions

1. Beneficiaries can obtain a cash advance on their inheritance now and repay the obligation when the trust is distributed (which must be within 3 years)

2. Beneficiaries can expect to get about a quarter to a third of their net inheritance early. Trust advances typically require 5-10 working days to fund.

3. The security doesn’t have to be real estate; it could be cash, stocks, or other liquid assets

4. Advances are not loans; they are cash lump sums paid to you now, which is discounted from the amount that you repay.

What Kind of Financing Terms are Available?

The cost of this type of transaction service may be from a quarter to a half of the total amount advanced. There is no “interest rate” or monthly payments because this is not a loan

Beneficiary loans

• Beneficiaries of trusts can use their inheritance in lieu of a cash down payment in order to borrow to purchase California real property from the trust.

• The maximum that you may borrow is about 75% of the current value of the property, less any existing mortgages, liens or creditor bills to the estate.

• This means that you will need to inherit at least 1/4 of the total trust or more, depending on the NET value of your inheritance.

• This will require coordinating the transfer of the property out of the trust into the borrower’s name (done in escrow) and typically requires at least some effort on the part of the Attorney and the cooperation of Trustee or Successor Trust

What Kind of Financing Terms are Available?

The rates and terms available are comparable to bank rates for a given borrower’s credit and income. Additional fees may be charged to coordinate the Attorney and Trustee efforts, sale, transfer, escrow, title insurance company and lender requirements.

So, what can you do with financing? Here are just a few examples:

1. Pay personal debts

2. Provide quick funds for emergencies

3. Stop foreclosure

4. Pay delinquent taxes

5. Provide money for repairs

6. Get cash for future living expenses

7. Pay for education costs

8. Pay settlements and fund other legal actions

What Kind of Financing Terms are Available? Interest rate premiums for equity-based first mortgages are typically 2 - 5% above the equivalent 30 year fixed rate term.

Due to their protective nature, California courts require loans to Conservators to obtain power to borrow on estate realty via a Court Order. This may take from as few as several days to several months to accomplish. It’s not unusual for the step alone to take 5-6 weeks in many court jurisdictions.

So, what can you do with mortgage financing?

Here are just a few examples:

1. Pay ongoing debts and medical bills

2. Pay attorney fees

3. Provide quick funds for emergencies

4. Pay Medi-Cal and other creditors

5. Stop foreclosure

6. Pay delinquent taxes

7. Money for repairs

8. Get “Junior” and his family out of the house (also called a “get out” loan)

What Kind of Financing Terms are Available?

Interest rate premiums for equity-based first mortgages are typically 2 - 5% above the equivalent 30 year fixed rate term.

Due to their protective nature, California courts require loans to Conservators to obtain power to borrow on estate realty via a Court Order. This may take from as few as several days to several months to accomplish. It’s not unusual for the step alone to take 5-6 weeks in many court jurisdictions.

So, what can you do with mortgage financing?

Here are just a few examples:

1. Pay ongoing debts and medical bills

2. Pay attorney fees

3. Provide quick funds for emergencies

4. Pay Medi-Cal and other creditors

5. Stop foreclosure

6. Pay delinquent taxes

7. Get Money for repairs

8. Get “Junior” and his family out of the house (also called a “get out” loan)

If you have no relationship to any of the estate heir(s) however you are prepared to make down payment and obtain a loan to purchase California real property, financing is possible with a well-qualified borrower, who can finance up to 95% of the purchase price.

Borrowers can choose to receive the money from a reverse mortgage all at once (lump sum), as fixed monthly payments (for up to life), as a line of credit, or a combination of these. The most popular option – chosen by more than 60 percent of borrowers – is the line of credit, which allows borrowers to draw on the loan proceeds at any time.

Mandatory Counseling

Borrowers are required to attend free counseling approved by the Department of Housing and Urban Development (HUD) before the reverse mortgage loan application can be submitted to underwriting.  Counseling provides objective feedback to help seniors make informed decisions.  It also ensures that the application process meets the strict guidelines mandated by the Federal Housing Administration.  It is recommended that this step be taken immediately as scheduling can be delayed several weeks due to increased demand.  There are numerous agencies in each county across the state that can service the counseling requirements (see “Sample Forms” for a complete list of approved counselors).  Appointments can be carried out over the phone or in person and usually take about one hour.  Upon completion, the borrowers receive a certification form that is submitted to the lender along with the loan application

 Paying Back The Loan

No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when all borrowers cease to occupy the home as a principal residence, whether the senior (the last remaining spouse, in cases of couples) passes away, sell the home, or permanently move out. The amount owed can never exceed the value of the home. Furthermore, if the home is sold and the sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to the senior or to their estate.