Estate Law Questions? Ask an Estate Lawyer.
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.
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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.
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