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

Sat Sep 21 08:13:14 PDT 2019

The problem with that is very few if any lenders will loan to LLCs especially single member one and even then they would require a guarantor

Bryce H. Dille
Dille Law, PLLC
Office: 360-350-0270
Cell: 253-579-5561

** Please note that I use the dictation feature of my iPhone and that sometimes everything I say does not get properly translated**

> On Sep 20, 2019, at 6:37 PM, John Creahan <john at cairn-law.com> wrote:
> 
> Perhaps the PR could transfer the house to the beneficiary subject to a note and security interest (in favor of the creditor) for the amount of the debt. 
> Once the beneficiary takes possession, he or she can refinance and pay off the creditor. 
> Assuming the creditor is not interested in receiving monthly payments, the note could be very short-term -- maybe three months -- just long enough to allow the beneficiary to refinance and pay off the creditor. (This will only work if the beneficiary is confident about being able to refinance.)  
> Hope this helps,
> John
> 
> John Creahan
> www.cairn-law.com
> 206-578-5877
> Fremont office:
> 3417 Evanston Ave. N, Suite 312
> Seattle, WA 98103
> 
> 
> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Terry Tassin
> Sent: Friday, September 20, 2019 5:10 PM
> To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim
> 
> Friday after 5 pm thought - have the PR set up an LLC with PR as sole member, then PR transfers the property into the LLC, and then have LLC sole member approach lenders re: loan?
> 
> --------
> Terry J. Tassin, Jr.
> Scarborough McNeese Oelke & Kilkenny, P.C.
> Five Centerpointe Drive, Suite 240
> Lake Oswego, Oregon  97035-8682
> Phone: 503.601.3698
> Fax: 503.601.3699
> tjt at smoklaw.com
>  
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> 
> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
> Sent: Friday, September 20, 2019 4:48 PM
> To: WSBA Probate & Trust Listserv
> Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim
> 
> Well, client has now approached two lenders and both refuse to lend to a PR of an estate.  The banks are saying he must transfer from the estate to himself personally first before they will consider a loan secured by the property.  If the creditor is not willing to allow a transfer to the PR individually, then we will get a court order.  Thanks for everyone's ideas.  They have been helpful.  
> 
> 
> 
> 
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> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of John Creahan
> Sent: Tuesday, September 17, 2019 7:27 PM
> To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim
> 
> Paul,
> Do you have a lender? I think Eric's answer is technically correct, but I suspect that many banks would hesitate to make a loan (with the PR as borrower) in this situation. 
> Just a thought,
> John
> 
> John Creahan
> https://apc01.safelinks.protection.outlook.com/?url=www.cairn-law.com&data=02%7C01%7C%7C929b8f741be243aa220d08d73be06a1e%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637043707361945721&sdata=80gKqPODSugEKDDIQ8gohFV7frGmuhDPc6Z5flei%2BIM%3D&reserved=0
> 206-578-5877
> Fremont office:
> 3417 Evanston Ave. N, Suite 312
> Seattle, WA 98103
> 
> 
> -----Original Message-----
> From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Lanza
> Sent: Tuesday, September 17, 2019 4:58 PM
> To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>
> Subject: Re: [WSBAPT] Chicken and Egg Question - Probate - Creditor's Claim
> 
> Does PR have non-intervention powers? RCW 11.68.090(1) allows PR to encumber/mortgage real property belonging to the estate.
> 
> Eric J. Lanza, J.D.
> 
> 
> 
> 
> -----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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