You have probably already found this out, but straight traditional bank lenders won't loan unless it is for the purpose of your husband buying out the other three heirs.But they won't add the rehab money as part of the purchase price. In theory the estate can borrow money and give a mortgage with the consent of the heirs, but in reality, lenders won't make that kind of a loan.You need to find a private party who makes mortgage loans, usually at somewhat higher than bank rates.
I hope this information is helpful and that you will enter a positive rating. I thank you for submitting your question to Pearl-Just Answer. We appreciate your business. If you need clarification or additional information, please send me a Reply and I will be happy to explain further. Please consult a local attorney to verify the accuracy of this information according to your state's laws.
The PR can only bind the estate so the lender will usually require that the four heirs also sign off on the mortgage. Otherwise, the estate could be closed, the property distributed to the heirs and one (or more) of them might claim that the mortgage wasn't binding on them. This all has to do with State law as to exactly when the title to a decedent's real estate vests in the heirs.
I hope this information is helpful and that you will enter apositive rating. I thank you for submitting your question to Pearl-Just Answer.We appreciate your business. If you needclarification or additional information, please send me a Reply and I will behappy to explain further. Please consult a local attorney to verify theaccuracy of this information according to your state's laws.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).