[WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

[Mark Vohr]

Paul - The quick answer is that it depends on the lender.    I think this would be an uphill battle with a conventional lender.  Short term hard money lenders may be a little easier to work with, but many of them come with much higher fees.  

I would add that I would probably not transfer the property into the name of the PR without a clear court order authorizing the transfer and approving the plan after notice to all the parties.  If you have plenty of equity - you may wish to see if a hard money lender will allow for the loan leaving the asset titled in the estate.  If you have non-intervention powers, I believe the PR has the authority to do this.  If you do not have NI powers, then you need a court order. 



Regards, 

Mark

Mark C. Vohr
Ohana Fiduciary Corp.
Ohana Financial Services
A Washington Trust Company
 Mark C. Vohr, J.D., CPG, Principal
PO Box 33710  Seattle, WA  98133
T:  (206) 782-1189 F:  (206) 782-1434
mcv at ohanafc.com      www.ohanafc.com

-----Original Message-----
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Paul Neumiller
Sent: Tuesday, September 17, 2019 4:37 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim

Listmates:  PR is surviving spouse.  PR needs to take out a loan secured by the family residence to pay off a creditor's claim.  Can a PR, as PR of an estate, borrow against an estate asset such as the residence or does PR have to transfer the residence into PR's name first, then borrow against the residence in order to pay off the creditor?  




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