Probate Loans and Heir Property in DC, Maryland and Virginia: A Plain-English Guide for Heirs and Owners Behind on Taxes

Short answer: a probate loan is a short-term loan secured by an inherited property. Heirs use it to pay back taxes or an existing mortgage, buy out siblings, or fix the house before selling or renting it. Owners who are behind on property taxes use the same kind of loan to stop a tax sale or to deal with DC's higher vacant and blighted tax rates. This guide explains how each piece works in Washington DC, Maryland and Virginia, and where to check the official rules.

Key points: probate is run by a court or a Register of Wills in each jurisdiction. Small estates have simpler procedures. Unpaid property taxes can lead to a tax sale. DC taxes vacant property at $5.00 and blighted property at $10.00 per $100 of assessed value. A lender needs someone with authority to sign before it can close.

What is a probate loan?

A probate loan (sometimes called an inherited property loan or estate loan) is a business-purpose loan secured by real estate that passed, or is passing, to heirs. It is not a personal loan to an heir. It is a loan against the house, repaid when the house is sold or refinanced. Typical uses:

• Paying delinquent property taxes, water bills or liens
• Paying off the decedent's mortgage before it goes into default
• Buying out siblings or other heirs who want cash instead of a share of the house
• Funding repairs so the property sells for more or can be rented

Heir property is a related term. It usually means real estate owned by several heirs together, often because the owner died without a will or the estate was never formally settled. Heir property is harder to sell or borrow against until title is cleaned up.

How does probate work in DC, Maryland and Virginia?

Probate is the court-supervised process of proving a will (if there is one), appointing someone to manage the estate, paying debts and distributing what is left. Each jurisdiction runs it differently:

	Who handles it	Small estate option
Washington DC	Probate Division of the DC Superior Court	For deaths on or after March 21, 2025, estates with assets of $80,000 or less (earlier deaths have lower limits)
Maryland	Register of Wills in the county where the decedent lived	Probate assets of $50,000 or less, or $100,000 or less if the surviving spouse is the sole heir or legatee
Virginia	Clerk of the Circuit Court in the city or county where the decedent lived	A small estate affidavit is available for some personal property, but it does not cover real estate

Thresholds change, so confirm them with the DC Courts small estates page, the Maryland Register of Wills and Virginia's court self-help site. Virginia also charges a state probate tax of 10 cents per $100 on estates valued above $15,000, and localities may add a local tax of up to one-third of the state tax.

Can heirs borrow against an inherited house before probate is finished?

Often, yes, but only once someone has the legal authority to sign. In practice that means one of two situations:

1. A personal representative or executor has been appointed and the will or court order lets them borrow or sell. The loan is made to the estate, and the title company confirms that authority.
2. Title has already passed to the heirs, and every owner on title signs.

If no one has been appointed, opening the estate is usually the first step. Bring the lender in early anyway: knowing the payoff and the repair budget helps the family decide whether to sell, refinance or keep the property.

How do sibling buyouts work?

A buyout lets one heir keep the house while the others are paid for their share. The usual steps:

1. Agree on value. Use an appraisal or broker price opinion that everyone accepts.
2. Work out each share. Start from the value, subtract the mortgage, liens and agreed costs, then split the remaining equity by each person's percentage.
3. Fund the buyout. The heir who is keeping the property borrows against it, or the estate borrows and distributes cash.
4. Record the deed. The departing heirs sign deeds or releases at closing, and title is updated.

Illustration only: a house valued at $600,000 with a $100,000 mortgage has $500,000 of equity. If three siblings share equally, buying out two of them costs about $333,333 plus closing costs, and the loan also pays off the $100,000 mortgage.

When heirs can't agree, a court can order a partition. DC, Maryland and Virginia have each updated their partition laws in recent years, adding protections for co-owners of inherited property such as appraisal and buyout rights. An attorney can explain how those rules apply to your situation.

What estate costs should heirs plan for?

• Court and filing costs: DC charges small-estate court costs on a sliding scale by estate value. Maryland charges no Register of Wills fee for small estates opened on or after October 1, 2022. Virginia charges probate tax.
• Publication: notices to creditors may have to be published in a newspaper.
• Carrying costs: property taxes, insurance (a vacant home may need a different policy), utilities and any mortgage payments continue while the estate is open.
• Professional fees: attorney, appraiser and, for a sale, a real estate agent.
• Repairs and code compliance: older homes often need roofs, systems or safety work before they can be sold at full value or rented.

What happens if property taxes on an inherited home fall behind?

Unpaid property taxes don't disappear when an owner dies. Each jurisdiction has its own process:

• Washington DC: the Office of Tax and Revenue holds tax sales for delinquent real property. After a sale, the owner generally has at least six months to redeem before the purchaser can ask the Superior Court to foreclose the right of redemption, and can still redeem until a final judgment. See the OTR owner's guide to redemption and D.C. Code § 47-1370.
• Maryland: each county runs its own tax sale. A certificate holder can eventually file to foreclose the right of redemption, and the waiting periods and notice rules are set by state law, which has been amended recently. Check the current text of Tax-Property § 14-833 and your county's tax sale office.
• Virginia: a locality can generally seek a court-ordered sale once taxes are still delinquent on December 31 after the second anniversary of their due date. Some cities can shorten that to the first anniversary. See Va. Code § 58.1-3965.

The earlier you act, the more options you have. A loan that pays off the taxes and liens can stop the clock while the family decides what to do with the property.

What are DC's vacant and blighted property tax rates?

DC taxes vacant and blighted buildings at much higher rates than occupied homes. According to the DC Office of Tax and Revenue:

Class	Rate per $100 of assessed value	Annual tax on a $500,000 assessment
Class 1A residential	$0.85	$4,250 (before credits)
Class 3 vacant	$5.00	$25,000
Class 4 blighted	$10.00	$50,000

The DC Department of Buildings (DOB) decides whether a property is classified as vacant or blighted. DOB lists exemption categories that include active construction, active efforts to sell or rent, and probate proceedings or litigation, with supporting documents. DOB also notes that blighted properties are eligible for exemptions only from Fiscal Year 2026 forward. See DOB's exemption page and vacant and blighted buildings page. If an inherited house in DC is sitting empty, check its classification and any exemption deadlines right away.

What if the property has code violations?

Older inherited homes often carry open violations: a failing roof, unsafe wiring, missing smoke alarms or exterior damage. Violations can bring fines, slow a sale and, in DC, feed into a blighted classification. The practical choices are to fix the problems before selling or renting, or to sell as-is at a discount. A probate loan can fund the repairs from the property's own equity, so heirs don't have to pay out of pocket.

Should you repair, sell as-is, rent or keep the property?

1. Get the numbers: the as-is value, the after-repair value, the payoff (mortgage, taxes, liens) and a repair estimate.
2. Check timing pressure: a tax sale date, a mortgage default, vacant or blighted billing, or heirs who need cash now.
3. Compare outcomes: net proceeds from an as-is sale versus a repaired sale after loan costs, or the rent compared with the payment on a long-term rental loan.
4. Pick the exit first. Every short-term loan needs a clear way out: a sale, a refinance into a long-term loan, or a buyout.

How does a RevitaLending probate loan work?

RevitaLending is a direct, asset-based lender in Washington DC and listed Maryland and Virginia counties and cities. For inherited and tax-burdened properties we offer business-purpose loans from $50,000 to $2M with no minimum FICO, secured by non-owner-occupied property and sized on the property and the exit, subject to underwriting. If the family would rather not borrow, our joint venture program may be able to partner on the renovation and share the profit at sale. Learn more on our probate loans page.

What to have ready: the property address, the death certificate, the will or letters of administration (if issued), the mortgage and tax payoff figures, any DOB or code notices, a repair estimate, and the plan: sell, rent or buy out.

Frequently asked questions

Official sources

• DC Superior Court Probate Division: Small Estates
• DC Office of Tax and Revenue: Real Property Tax Rates
• DC OTR: Owner's Guide to the Tax Sale Redemption Process
• DC Department of Buildings: Vacant and Blighted Buildings
• Maryland Register of Wills: Small Estates
• Maryland Tax-Property § 14-833
• Virginia Courts: Probate in Virginia
• Virginia Tax: Probate Tax
• Code of Virginia § 58.1-3965