[WSBAPT] Getting loan in purchasing partial interest in property

[Bryce Dille]

There are lenders who will loan and take as security a tenant in common interest depending on the valuation and the strength of credit of the borrower.

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Bryce H. Dille
Campbell, Dille, Barnett & Smith,  PLLC
P.O. Box 488
Puyallup, WA  98371
Voice:  253.848.3513
Fax: 253.845.4941
bryced at cdb-law.com<mailto:bryced at cdb-law.com>

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Mike Winslow
Sent: Friday, March 18, 2016 8:16 AM
To: 'WSBA Probate & Trust Listserv'
Subject: Re: [WSBAPT] Getting loan in purchasing partial interest in property

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<mailto:Mike at winslegal.com>

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From: wsbapt-bounces at lists.wsbarppt.com<mailto: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: jennifer at sohn-law.com<mailto:jennifer at sohn-law.com>

http://www.sohn-law.com<http://www.sohn-law.com/>



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