Friday, January 17, 2014

Read This Before You Apply For Inheritance Loans

By Marissa Velazquez

You were named as an heir to an estate and the will has been contested. You know that probate may take years and you may not be willing to wait. A financial institution is offering you money for your share and you feel it is the right way to go. Read the following information about inheritance loans carefully before you make the decision to waive your rights for money.

Although it is referred to as a loan, it is not. The financier is not interested in the estate you want to receive as a collateral. Note that you will not come back and pay the loan and get your property back. You are essentially entering into a binding contract to give the financier your inherited property in exchange for money in an irreversible process.

The body responsible for funding knows you as an heir to the estate of deceased person. However, you must provide a solid proof to your funding agency. In this regard, ensure that you have copies of the death certificate of the deceased, his or her last will, and the legal papers to identify you and your connection to the owner of the will.

This service is not free at all. Do not expect the funding agency to give you the exact monetary value of your inherited property. You will indeed be lucky if you get anything above forty percent. Expect to lose more than half the value of your property to compensate for your lack of patience with the probate procedure.

This facility is called a loan and you will have to fulfill all the requirements for a loan, which include being in good financial standing. The financier will assess you to ensure you have paid all your taxes, not bankrupt, and that you really support your estranged wife and children as required. This is because the financier is risking money and must bring down the risk to a manageable level.

In case some of the property is the subject of a mortgage, copies of title and all the agreements surrounding the mortgage will be required by the funding source before you are funded. Further, any issues with realtors must be supported by relevant documentation. This will be important especially when the funding body will start claiming the property after the probate

The financier may not adequately trust you. That is why he or she will go to all lengths to ensure all claims and documents you have submitted are genuine and relevant. He or she will visit the administrator of the inheritance and the attorney dealing with the probate to confirm that you are indeed a beneficiary in the estate. You will only be safe if all your documents are genuine.

Once you get your cash and leave the scene, the funding agency will bear any negative consequences emanating from the will and the probate. This may be the insolvency of what you were to inherit, if at all it ever happens. You really need to consider the issues discussed in this article before you decide to apply for inheritance loans and forfeit your estate.

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