Bridge Loan for Estate?

Greetings to One & All from The [North] Jersey Shore.

I have a friend who has lost her Mother in the past few weeks.

My friend, the sole heir & Executor-to-Be is a woman in her mid/late 60's.
The deceased is/was the sole owner of 2 properties.

There are no assets/personal property nor bank accounts, insurance policies, etc.


This concerns the "income property".
Run down filled with crap and there are outstanding code violations, some back taxes 2 quarters heading for a third.
No mortgages/liens [yet!] on the property.

With Moms death she has now only 500.00 per month income.

The moment the surrogates court appoints her tas Executor and receives "Letters" she will be listing the income property for sale.

Is there such a thing as a "Bridge Loan" that will provide her with some income for funeral expenses, necessary repairs to fix code issues and $ for dumpsters & labor to empty the house so it can be sold.

There is also a dire need for $ for personal living expenses.
Does such a loan product allow for repaymentt\ to start after some time say after the real estate closes...say 4 to 6 months?


If there is such a loan product can you direct me what to look for and where?
A quick tour of Google left me confused thinking I might not be using the right search terms.

Many thanks for your help.

RowZ

Are these properties owned free and clear?
If the estate is insolvent, it may be better to not inherit them and their inherent liabilities. Jersey (been there, done that) is not the best place to be a residential landlord.

Personal living expenses of the potential airs is not a responsibility of the estate. Using estate assets (over a modest management fee for the executor/representative) for such is improper.

rowz said:

Greetings to One & All from The [North] Jersey Shore.

I have a friend who has lost her Mother in the past few weeks.

My friend, the sole heir & Executor-to-Be is a woman in her mid/late 60's.
The deceased is/was the sole owner of 2 properties.

There are no assets/personal property nor bank accounts, insurance policies, etc.


This concerns the "income property".
Run down filled with crap and there are outstanding code violations, some back taxes 2 quarters heading for a third.
No mortgages/liens [yet!] on the property.

With Moms death she has now only 500.00 per month income.

The moment the surrogates court appoints her tas Executor and receives "Letters" she will be listing the income property for sale.

Is there such a thing as a "Bridge Loan" that will provide her with some income for funeral expenses, necessary repairs to fix code issues and $ for dumpsters & labor to empty the house so it can be sold.

There is also a dire need for $ for personal living expenses.
Does such a loan product allow for repaymentt\ to start after some time say after the real estate closes...say 4 to 6 months?


If there is such a loan product can you direct me what to look for and where?
A quick tour of Google left me confused thinking I might not be using the right search terms.

Many thanks for your help.

RowZ

Click to expand...

I am confused. What does the death of her mom have to do with HER own income and living costs? Surely a women in her 60s wasn't being supporting by a very elderly mother?

Do you mean the property has higher expenses than income?

Thanks to you both for the input.

Of course, you have raised a couple of points I had not thought of.

Mainly of course, I can see that the estate is not responsible for her living expenses.
Being the only heir, I thought that a sum for personal living expenses would get her thru the sales period, but since it has been pointed out, it is not the correct thing for the estate to do.

Is there a way for her to get $ for living while the estate is sold off?



Overall the situation is a mess. :-/

Both properties are free & clear.

The rental property, which was never a legal rental [it never has the CO and there were under the table tenants] as the daughter ran it poorly, got into Code issues and ended up closing up the place for the past 10 years.
There is no income from the rental property.
ZERO
She is a hoarder.

The other is the principal residence of the decedent and is where the daughter resides. I am afraid that this property too [like the seashore rental]is filled with crap.

I am told that there is a will that she will show me Monday.
She has asked me to go to the Surrogate Court with her & hold her hand to open a file for probate.

The daughter has not worked in years and has "taken care of Mom" as well as a couple of other older relatives for the past 15/20 years.

In short she needs to sell both properties and after settling estate debts, and
receiving her share, move into an apartment

With a vey rough guesstimate of expenses and proceeds, she may come out with 3-400K. This is a pretty realistic estimate of the value of the real properties for quick sale even in this currently weak market.

The big thing is getting through the next 4 to 5 months.

Mom's money goes to any and all estate creditors FIRST.

She needs to file probate and estate creditors need to have the appropriate opportunity to file creditors claims on mom's estate BEFORE it can be diminished by an heir. There also may be estate or final taxes due.

Had the heir removed her junk years ago so the properties could provide a cash flow, perhaps some caregiver assistance, at least part time, could have been provided and afforded and the heir could have continued to accrue retirement savings and social security benefits. She encumbered the properties with her junk and that denied cash flow mom might otherwise have had available. Had it been sold ten years ago, betcha it would have had more value. If she was acting as mom's fiscal watchdog (guardian over her finances), she acted very irresponsibly.

Bottom line is still this: the estate needs to go through the proper steps and without filing and allowing any creditors, medical, hospital, hospice and other expenses mom accrued to be totaled up, there is no way to know how much the heir may be entitled to, nor can she use up assets until the process allows for any other potential heirs to come forward. Probate has nothing to do with an heirs lack of retirement planning and can't be shortened for that reason. It's not HER money until probate is done. And how much is left for her can't be known yet.

Maybe heir should haul all her junk out of the residence and get a couple of roommates to get by for now. And a job.

Nextwife: Many thanks for the reply.

I saw the daughter yesterday and advised her of the need to open probate, ASAP.

The lady is not dealing well with the overall situation.

She has the code enforcement people breathing down her neck and a builder is chasing her to let him " go partners" with her and he will pay back taxes, deal with the code people and his fix up, sell & split the profits spiel is a rather grandious one and filling the heir-to-be with false hope.

I am telling her that until she opens probate and receives "Letters" she has no authority to do anything.

I also believe that she is chicken waiting to be plucked.

Another question: Is this daughter correct in going to the scheduled Code Enforcement Court heraing [the day after Labor Day] and trying to co=operate with them about fixing the code issues? This builder is telling her that he will do so.

She has asked me for advice and I am about to tell her to not worry about the Code people, go to the hearing and let them wait until she has the "Letters" and then she can deal with the Code issues and the Builder.

I also am in favor of her selling the place "at arms length" and gettting what she can.

Again, therere is no ready cash,
Moms bank account is frozen there is no personal property worth selling [I asked] and, oh yeah...the principal rresidence is very likely smelly & full of crap as well.

No $ for an atty.

No money for any clean-ups.

I am really ready to "cut her loose" and not deal with her any longer

Just in case you want to know, I am merely an not too close friend who happens to be an estate liquidator [30 years] who has seen plenty of estates.

This one is really FUBAR.

Again,many thanks for input.

RowZ

She has no legal authority at this point to do anything with mom's stuff. She should tell this "builder" to back off, she'll deal with it. She should call code enforcement and advise that the owner recently died and probate has not been opened yet. And then ask if they can refer her to any city repair programs that may help in the case of an otherwise insolvent estate.

She should start tossing out her crap and making the properties saleable. If she's not working, she surely has the time. She also needs to look for a job, because she will NOT have money from the estate anytime soon. If the house is that bad, it's really not known what the possible net after sale might end up being.