Many Maryland estates end up going through probate. This is a long process that can prolong inheritances being distributed to their rightful beneficiaries. A probate loan can help; this is what it is and how you can obtain one.
Understanding probate loans
A probate loan is an amount of money you can borrow against an inheritance you expect to receive. It works similarly to other loans as it allows you to borrow money toward your eventual inheritance while the probate process is ongoing. It includes interest and requires you to make monthly payments to satisfy the debt until the estate is settled. Probate loans carry requirements similar to those of mortgages or home equity lines of credit and are more of a cash advance to pay off bills or debts.
If you need a probate loan, you can only get a specific amount of money from the lender. The amount you obtain also depends on your credit and assets; the better your credit score and creditworthiness and the more assets you have, the more you can receive.
Obtaining a probate loan
Probate loans are fairly new, so getting one might be tricky. However, if you need one, it’s wise to research a few different lenders that offer them. Just like the probate process takes time, it can take several weeks to months to receive a probate loan. Banks and credit unions don’t usually offer them, so you’ll have to look into other lenders that deal specifically with inheritance financing.
When researching lenders, look at various information such as the lender’s ratings and reputations, how much you could borrow, fees and interest rates and repayment terms. These details can help when you narrow down your choices and apply for a probate loan.
Once you are accepted for a probate loan, be patient. You can expect to receive between 25 to 75% of your expected inheritance.