Cash offers, advances and loans after a death: how to spot the predatory ones

The short answer: after a death, heirs and executors start getting calls, letters and texts offering fast cash for the house, cash advances, or loans. Some are fair. Some are built to take equity from a grieving family. The warning signs are pressure, secrecy, and a deal that has never been compared with anything. Slow down, put every offer in writing, and run it past the estate attorney before you sign.

Why families get targeted

Probate filings are public. Once a petition is filed, investors and marketers can see the names and the case, and they can find the property in public records. That is why the mail starts within weeks of a filing, and why the first offer usually arrives before anyone has priced the house.

Warning signs in a cash offer

• A deadline that isn’t real. “This offer expires Friday” on a house that has never been on the market.
• They want an heir to sign, not the executor. In probate, only the personal representative with Letters can sell the house. A buyer asking a beneficiary to sign a deed or a contract is a red flag.
• A quitclaim deed for a small check. Signing away your interest for a few thousand dollars can give up far more than it pays.
• “And/or assigns” in the buyer’s name. That lets the buyer sell the contract to someone else for a profit. Ask who the real buyer is.
• The “agent” is the buyer. Ask directly whether the person bringing the offer represents the estate or is buying for themselves.
• No comparison with the market. One private offer says nothing about what buyers will pay. In one of my Carson sales, a $465,000 cash offer was turned down, and the house sold on the MLS for $599,000.
• Upfront fees. Be wary of anyone who wants money from you to “help” sell the house or “speed up” the probate.

Cash advances on an inheritance

An inheritance advance is usually an assignment of part of what an heir expects to receive, not a conventional loan. A company pays cash now and collects from the estate later. That can help an heir who is stuck, and it can also cost far more than it looks. Before you sign one:

1. Get the total cost in dollars, in writing: how much you get now and how much the company collects later.
2. Ask what happens if the estate is smaller than expected or the case takes longer.
3. Compare at least two companies.
4. Ask anyone who introduces you to an advance company, including me, how they are paid.
5. Show the contract to the estate attorney before you sign.

California gives the probate court a check here. Under Probate Code §11604, the court can look into an assignment of an inheritance and refuse or change the distribution if the fees are grossly unreasonable or the deal was obtained by duress, fraud or undue influence.

I do introduce heirs and attorneys to inheritance-advance companies through Get Probate Cash. I am a broker, not a lender, and the terms are the company’s. When I refer an heir to an advance company, I am sometimes paid a referral fee of 5–10% of the advance. When I represent the seller of the property, I am not paid for the advance. Helping with it is part of my service. Hold any company I introduce to the same checklist.

Loans against an inherited house

Private and hard-money lenders also market to heirs. A loan has to be paid back, often at a high rate and with the house as security. Ask for the rate, every fee and the payoff date in writing, and ask the attorney whether the estate can borrow at all under your authority.

How to protect the estate

1. Don’t sign anything on the first call.
2. Check licenses. California real estate licenses can be checked on the DRE license lookup.
3. Get a written opinion of value before you respond to any offer.
4. Let the open market compete. When a probate sale goes to court confirmation, buyers can also overbid at the hearing.
5. Keep the attorney in the loop on every offer, advance and loan.

Got an offer you’re not sure about?

Send it to me. I will tell you what I think the house is worth on the open market, at no cost, so you can compare.

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Related: Verified sale results · Support for executors, trustees and conservators · Selling an inherited house in Los Angeles

Educational only, not legal advice. California probate, trust and conservatorship matters are fact-specific. Confirm authority, court requirements, and tax consequences with the attorney and tax advisor.