[WSBAPT] Getting loan in purchasing partial interest in property

[Mike Winslow]

There should be a bank that will do the loan only to the son, as borrower, but will require pledge of the entire property as collateral. Son will be on prom note, but client will not. That way the client will remain “debt free”, as their name will not be on the promissory note. But their interest (the 1/3 TIC) will be at risk under the Deed of Trust. Not an uncommon approach. 
 
The idea of a sale by client to son, noted in your second post just creates additional and unnecessary excise tax and income tax reporting. Overly complicates things and does nothing more than the above approach.
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jennifer Sohn
Sent: Thursday, March 17, 2016 9:34 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Getting loan in purchasing partial interest in property
 
Hello, my client owns a commercial property with 2 others. There is no mortgage on the property. 2 of the owners will be bought out by my client's son, and the son needs to get a loan to purchase this partial interest. The desire is for my client to continue to be debt-free on her 1/3 interest, and for her son to be the sole person responsible for his loan.
 
The problem is, there is no bank who will make a loan to the son with only 2/3 of the property as collateral. 
 
Has anyone dealt with this situation? How does a tenant-in-common normally get a loan (does he always need the other tenants-in-common to put up their interest in the property as collateral when he needs a loan?)
 
Thanks!
 
 
 
 
 


 
-- 
Best regards,
 
Jennifer Y. Sohn
Attorney at Law
(Licensed in CA and WA)
Sohn Law PLLC
10900 NE 4th Street, Suite 1850
Bellevue, WA 98004
Tel: 206.617.7874 / 425.633.2678
Fax: 425.732.9748 
Email:  <mailto:jennifer at sohn-law.com> jennifer at sohn-law.com
 <http://www.sohn-law.com/> http://www.sohn-law.com
 
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