[WSBARP] Lien v Deed of Trust

[Mark Anderson]

Potential client wants to provide money to PC's child out of a Trust so that child can purchase a new home with child's spouse.  Home will be financed by money from child and child's spouse, the money from the Trust, and a first position loan from lender to child and child's spouse.  PC wants to make sure child's spouse will not receive any of the equity represented by the money from the Trust in the event the marriage goes south.
I have recommended they use a note in favor of the Trust with a second position deed of trust and a subordination agreement (if the primary lender needs one).  Offering that could, however, jeopardize the couple's ability to get a primary loan unless the terms are exceptionally favorable as far as monthly payments (if any at all) so as to not impact the couple's financial picture.
PC asked about just having child and spouse consent to recording a lien on the new home, but I'm having trouble finding any sort of statutory basis for using a lien as opposed to a note any deed of trust.
Apart from these possible solutions, do you of you have other ideas I could offer PC?
Thanks.
Mark B. Anderson
ANDERSON LAW FIRM PLLC
821 Dock St  Ste 209  PMB 4-12
Tacoma, Washington 98402
+1 253-327-1750
+1 253-327-1751 (fax)
marka at mbaesq.com<mailto:marka at mbaesq.com>
www.mbaesq.com<http://www.mbaesq.com/>
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