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Trust and Estate Solutions
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Hi, I'm Jonathan Brooks, the principal of First Probate. First Probate provides short term loans to fiduciaries - executors, administrators, trustees, conservators and guardians - who borrow on behalf of trusts and estates. First Probate specializes in resolving challenging and difficult title problems associated with trusts and estates. I have provided these services to the probate community for more than 20 years.
First Probate is happy to provide you with a complimentary property profile, recorded lien and last vesting deed, upon request (Send us an email).
If you have any comments, simply hit REPLY and let me know. If you have some information that you would like to communicate to the probate community, forward it to me for consideration. Lastly, if I haven't convinced you that my newsletter is worthwhile, just press "SafeUnsubscribe" below.
Here's hoping we continue to stay in touch and that we may be of service to you!
Very truly yours,
Jonathan Brooks
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STRAIGHT NOTE LOAN PRODUCT
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First Probate Loans introduced a new loan product a few years ago to provide liquidity to upgrade, fix, enhance and/or clean up homes, to allow the family to obtain the best sale value.
Visit our website for more information
These loans can be first trust deeds or in junior position (2nd, 3rd, or even 4th position) and be used for all loan purposes to benefit an estate. The terms of the loan can be tailored to the specific estate's needs. For example, if the estate can make payments, a simple amortizing or partially amortizing loan may be the best value. Or, should the trust or estate be unable to make payments a straight note may be the best option. A straight note has no payments; and, all principal and interest payments are due at the maturity date of the promissory note. Loan terms are usually 12-24 months; interest rates vary depending on location, lien position, loan to value, and the ability to make payments.
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QUICK RESOURCE GUIDE for Fiduciaries and their Attorneys including Practical Tips for
Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event
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A
s I embark on my 29th year working in and serving the probate and trust community, this resource guide will assist you to quickly find what you're looking for:
- To find out what is necessary to obtain a trust loan, go here
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To find out what is necessary to
obtain a probate loan,
- go here
- To learn more about funding Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event, go here
- To learn more about Paying Off Reverse Mortgages, go here
- To learn more about Loans to Upgrade Trust and Estate Real Property Prior to Sale, go here
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Paying off a Reverse Mortgage
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In my business of arranging loans to trusts and estates, I pay off a significant number of reverse mortgages. As more seniors turn to reverse mortgages, surviving spouses or adult children become overwhelmed when one or both of their parents eventually dies.
When a reverse mortgage borrower dies, the loan becomes due and payable; and, if adequate and quick communication to the reverse mortgage company is not made, the property will go into foreclosure and additional fees added. Beneficiaries of trusts and estates, and intestate heirs, frequently call me when they want to keep the family home and prevent a trustee sale or foreclosure proceeding.
Here are a few practical tips:
- Please call me as soon as the reverse mortgage borrower passes. The longer it takes to payoff the reverse mortgage lender, the more additional fees will be added.
- A reverse mortgage servicer uses a number of resources to find out when a borrower dies, including the Social Security death index, proprietary databases and annual occupancy letters. Once the servicer discovers the borrower has died (or vacated the property for a nursing home), the servicer sends out a letter intended to inform the heirs of the rules of the loan and ascertain their intentions for the loan and the property.
- Alternatively, if the reverse mortgage borrower was married, the surviving spouse might be able to remain in the home even if he or she wasn't a co-borrower (please look at HUD's New Guidelines for Non-Borrowing Spouses).
- According to HUD guidelines: If the property is underwater the heirs may purchase the property directly from the lender at 95% of the appraised value. The borrower's personal belongings and furnishings can be removed. Fixtures, as defined by state law, can't.
- If there are tenants in the property after the borrower passes away, it's fraud (according to HUD guidelines) because the loan became payable when the last owner vacated the premises.
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THE 25th ANNUAL PFAC 2020
EDUCATIONAL CONFERENCE
We are proud to again participate as a Bronze Sponsor of The 25th Annual P
FAC 2020 Educational Conference, this year in San Francisco, California May 27-30, 2020.
To obtain more information about the 2020 PFAC Conference news via email,
click here.
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Have Questions?
We're happy to help answer any questions you have.
JONATHAN BROOKS
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