Commercial Loan Corporation is a licensed California lender specializing in making loans to trusts and estates. Unlike most lenders who provide a broad range of loans, we focus specifically on trusts, irrevocable trusts and estates. In fact every month we help clients by providing trust loans so that an equal distribution of assets can be made. Our trust loans help beneficiaries meet the requirements of California Proposition 58 and help them to avoid property tax reassessment on an inherited home.On average we save our clients over $6,000 per year in property taxes by helping them avoid property tax reassessment.When receiving a trust loan from Commercial Loan Corporation, you can count on:
An simplified application process
Quick Approvals and Fast Funding
Our Loans Fund In As Little As 7-Days
Same Day Loan Approvals
The Highest Level of Customer Service
If you, a family member, client or friend may be able to benefit from a trust loan, please call us at 877-464-1066. We provide clients with a no cost estimate on how much might be saved by taking advantage of California Proposition 58’s exclusion from property tax reassessment.
Loans to Irrevocable Trusts
Most banks and lenders are not willing to lend on a property that is held in an Irrevocable Trust. Instead they require that the property be removed from the trust before placing a mortgage upon it. This can make it difficult if not impossible for a beneficiary to qualify for Proposition 58. If you are trying to preserve a parents low Proposition 13 property tax base on an inherited property that is held in a trust, call us at 877-464-1066 and we can help you simplify what can be a complicated process.
Avoid Property Tax Reassessment On A Home Your Inherit From Your Parents
How to avoid property tax reassessment on a home you inherit from your mother or father in California
One of the biggest mistakes that most Californians make when inheriting real estate from a parent is not taking advantage of California Prop 58. In fact even some Estate Planners, Attorneys and Fiduciaries do not fully understand the full benefits and how to navigate Proposition 58. California Proposition 58 provides Californians with the ability to avoid property reassessment when inheriting a home from a parent.
Why is Proposition 58 and the ability to avoid property tax reassessment so important?
Avoiding property reassessment means you assume the existing property tax valuation that your parent had. With how rapidly property values have appreciated in California over the last 50 years, avoiding reassessment can mean an enormous tax savings. For instance, lets say that your parents purchased their home in 1980 for $180,000. Because of California Proposition 13, the county can not reassess a home more than 2% per year while held by the same owner. For this example we will estimate the county has the home you are inheriting assessed at $250,000. If the County property tax rate is 1.2%, that means the yearly property taxes on the home are just $3,000.
If you inherit the property from your parents, and you or your legal representation do not submit a request for an exclusion from reassessment and the home is currently valued at $1,250,000, your annual property taxes will jump to $15,000! That is a difference of $13,000 per year in property taxes that you could potentially be avoided. To compound the issue, property assessment values can be reassessed upwards by 2% annually. So the following year if that occurs, your property taxes will increase by another $300 as opposed to just $60 if you had received your exclusion from reassessment. Over 10 years that can really add up.
How can Commercial Loan Corporation help with Proposition 58 and an exclusion from Property Tax Reassessment?
California Proposition 58 has eligibility requirements. A process needs to be done correctly and proper documentation needs to be filed in order to receive and exclusion from property reassessment on a parent to child transfer of real estate. One of the stipulations is that when a parents home is held in a trust, an equal distribution of the trust assets must be made to qualify for Proposition 58. An important side note is that the beneficiary receiving the property can not use their own funds to create an equal distribution. If this is done, the assessors office views it as a property transfer between beneficiaries as opposed to a parent to child transfer, making it ineligible for a Proposition 58 exclusion from reassessment. Instead, the California Board of Equalization requires that a third party loan be used to provide the trust with sufficient cash for an equal distribution to be made. This information can be found on the California Board of Equalizations website at the following link that addresses questions and answers regarding California Proposition 58.
“When a trustee or estate administrator has the power to distribute trust assets on a pro rata or non-pro rata basis, the distribution of real property to one child qualifies for the parent-child exclusion if the value of the property does not exceed that child’s interest in the total trust estate. A trustee who elects to make a non-pro rata distribution may equalize the value of the other beneficiaries’ interests in the trust assets by encumbering the real property with a loan and distributing the loan proceeds to the other beneficiaries. However, a loan cannot be made by any of the beneficiaries of the real property to the trust in order to equalize the trust interests. Such loan would be considered payment for the other beneficiaries’ interests in the real property resulting in a transfer between beneficiaries rather than a transfer from parent to child, which would disqualify the transfer from the parent-child exclusion.”
Commercial Loan Corporation is one of the only lenders in California that provides loans to trusts with out the requirement of a personal guarantee. This unique mortgage product allows an illiquid trust to become liquid and for the inheriting beneficiary to qualify for the benefits of Proposition 58 by meeting the parent to child transfer requirement. Unlike other lenders, we specialize in Proposition 58 loans. Our trust loan enables a beneficiary to encumber the inherited home and infuse the trust with the cash needed so that an equal distribution can be made and they can qualify for the parent-child exclusion and avoid a property tax reassessment with Proposition 58.
Call Us Today For Assistance
If you have any questions on the process of obtaining a loan for a property held in an irrevocable trust, please call us at 877-464-1066. One of our Proposition 58 loan specialists can answer any questions you may have. We can also provide you with a no cost trust loan benefit proposal. The proposal will show you how much you could save by optimizing your trust distribution. On average we save our clients over $6,000 per year in property taxes and $40,000 in additional distributions to beneficiaries. Let us help you avoid property tax reassessment!
When you are considering keeping an inherited home from a parent and need to borrow money to buyout siblings or beneficiaries, it is important to make sure that it makes financial sense to do so. To assist you in doing so, we created the Commercial Loan Corporation Trust & Estate Loan Benefit Calculator.
Our trust and estate loan benefit calculator will help you quickly and easily determine if it makes sense to apply for a Proposition 58 exclusion from reassessment and take out a trust or estate loan. The loan benefit calculator compares your property tax savings to your estimated loan expenses and determines approximately how long it will take to recover those costs. If you plan on keeping the home longer than it will take to recoup the fees, then the loan is of benefit; if not then it would make more sense to not conduct the loan.
Commercial Loan Corporation is very excited to welcome Tanis Alonso as the latest addition to our team! Tanis is an Account Executive in our Trust & Estate Bridge Loan Department. Her primary role is to assist clients, attorneys, trust administrators, paralegals and fiduciaries in obtaining short term bridge loan financing for beneficiaries and heirs that want to take advantage of Proposition 58’s exclusion from property tax reassessment to preserve a parents low Proposition 13 tax base on inherited property.
“My commitment to my clients is that i will always put your needs first! You can expect 100% transparency from me and i will always look out for your best interest.
Prior to joining the Commercial Loan Corporation team, I attended California State University, Fullerton for Business Management. I obtained my Real Estate license in 2005, but continued down the path of Restaurant Management advancing into a Customer Service Specialist and Developmental Training Manager. I have a passion for taking care of others, am very detail oriented and have a do whatever it takes mentality.
Outside of work, I like to spend my free time with my family and volunteering with various organizations. My favorite thing to do is take my dog Beau to the dog park so he can play with all his friends.
I am beyond excited to start a new journey with Commercial Loan Corporation and to be working alongside a group of individuals with the upmost integrity and expertise.”
Contact Information For Tanis Alonso:
Tanis Alonso, Account Executive for the Trust & Estate Bridge Loan Department can be reached at 714-442-8995 or by email at firstname.lastname@example.org. If you are interested in more information on our Private Money Bridge Loans for Trusts & Estates, please call Tanis or complete the short form located here. For immediate assistance from any member of the Bridge Loan department, please call us at 877-464-1066.
For additional information on our bridge loans that assist clients who are inheriting real estate from a parent and want to keep the existing low property tax payment, please click here.
California Bridge Loan Financing To Trusts & Estates
Commercial Loan Corporation specializes in providing bridge loans to trusts and estates. We are one of just a handful of lenders in California that provide bridge financing to trusts. Even more importantly, we specialize in this type of lending. Often times our clients utilize our private money bridge loan financing to allow for an even distribution to be made from a trust or estate. This can be crucial when a client is trying to receive a Proposition 58 granted exclusion from property tax reassessment to preserve a parents low property tax base on inherited property.
Thanks to California Proposition 13, property taxes in California can not increase by more than 2% each year. Since property values in California historically increase at a far higher rate, retaining a parents low property tax base can be incredibly valuable. In fact, on average we save our clients $6,200 a year in property taxes by helping them avoid a property tax reassessment. Over time that savings can compound, making for an incredible benefit. If you are inheriting property from a parent and are interested in preserving their low Proposition 13 property tax base, call us at 877-464-1066 and we can help you determine how much you might be able to save by utilizing one of our bridge loans.
What Is A Bridge Loan?
A bridge loan or bridge financing is a short term loan utilized until a person or trust secures permanent financing. Bridge loans or bridge mortgages are only intended to be held for a short period of time and typically have a term between 1 and 12 months.
Many of our clients either pay our bridge loan off in full after their exclusion from property tax reassessment has been granted or will refinance the debt with a conventional mortgage once the Proposition 58 exclusion has been granted. We are also able to assist our clients with permanent financing if needed. If you, a family member or client is interest in receiving a bridge loan for a trust or estate, please call us at 877-464-1066 so that we may assist you.
When it comes to choosing a California Private Money Lender or California Hard Money Lender, you have a handful of options to choose from. Selecting the right one might be more important than you think.
Interest Rates, Penalties & Fees
For instance, choosing the best private mortgage lender can have a significant impact on your pocketbook. Lenders make money on a loan in a few different ways. The most common ways are through fees, interest rate premiums and penalties. One of the most important things that separates Commercial Loan Corporation from other California Private Money Lenders is that we do not charge any form of prepayment penalties, we offer competitive fees and have some of the lowest interest rates in the hard money lending marketplace. Prepayment penalties alone can cost a borrower potentially tens of thousands of dollars or even worse, trap them in a high interest rate loan that they no longer want or need!
Another important factor to consider when selecting the right private money lender is customer service. We are aware, that in this day and age, the phrase “Customer Service” almost sounds sarcastic. At Commercial Loan Corporation you are more than just a loan number. We might be a relatively small private money lender, but we are big on the customer experience. Regardless of your loan amount, you will always be treated with respect and courtesy by every member of our team. It is a sincere goal of ours to provide you with the fastest and best mortgage transaction that you have ever experienced. In many cases, we can fund a private money loan to a trust or estate in as little as 7 days. Please view some of our recent customer testimonials located here.
As you may be aware, in some situations California Proposition 58 grants residents the ability to transfer Real Estate along with a Proposition 13 protected property tax base from a parent to child. Sometimes in order to qualify for this exclusion against reassessment of property taxes, the beneficiary or heir may require a private money bridge loan or hard money loan. When it comes to Trust & Estate Bridge Loans and Third Party Private Money Loans to Trusts and Estates, experience with these types of loans is critical. The truth is that most California hard money lenders either never or rarely lend money to a trust or estate for Proposition 58 tax benefit purposes. If the financing is not conducted properly, the County Tax Assessors office is likely to reject the borrowers requests for a property tax reassessment exclusion. Even a small mistake could mean missing out on possibly thousands of dollars annually in property tax savings. At Commercial Loan Corporation, we specializes in providing short term financing and bridge loans to help our clients obtain Proposition 58 property tax reassessment exclusions. Every member of the Commercial Loan Corporation team has at least 15 years of mortgage experience and combined, our team has over 90 years of mortgage experience.
Commercial Loan Corporation Will Make You Look Like A Hero
At Commercial Loan Corporation, we believe that one of our jobs is to make our business partners look good! When you save your clients thousands of dollars in property taxes each year, simply by recommending a Commercial Loan Corporation Trust or Estate Loan, you are going to look like a Superhero!
Commercial Loan Corporation specializes in making 3rd party loans to trusts and estates. These trust and estate loans allow acquiring beneficiaries and heirs to qualify for an EXCLUSION FOR REASSESSMENT OF PROPERTY TAXES granted by California Proposition 58. When a trust or estate does not have sufficient liquid assets to make an even distribution, you can show your clients how a 3rd party loan will allow them to retain their parents low Proposition 13 property tax base. The process is typically both faster and less expensive than having a client sell their home. In fact, we can often times fund a third party trust or estate loan in as little as 7-10 days. We specialize in these transactions, we are here to serve you and we charge absolutely no prepayment penalties.
Do you currently have any clients that may be able to benefit from one of our loans or have any questions I may be able to answer? If so, please call us or pass on our information to your client. We can be reached at 877-464-1066!
Commercial Loan Corporation – California Private Money Lender. Joseph Minton, Autumn Skerritt & Kerry Smith
Here Is How The Process Works For A California Trust or Estate Private Money Loan From Commercial Loan Corporation
By: Autumn Skerritt
Hi, I am Autumn from Commercial Loan Corporation. As the loan processor, I typically get introduced to the Trustee or Borrower after our Account Executive has informed them of the loan details and provided them with a clear understanding of the mortgage fees. After making an introduction call to the client, I put a “Needs List” together. A needs list is a list of conditions that I will need the client to provide before we can close the trust loan, estate loan, probate loan or mortgage. At Commercial Loan Corporation we try to make this process as painless as possible for our Trustees and Clients. My goal is for the “needs list” to have less items on it than there are syllables in the word tri-ni-tro-phen-yl-meth-yl-ni-tra-mine. The best part is, doing a trust or estate loan with Commercial Loan Corporation is easier than pronouncing the word.
To give you an idea of what type of conditions we need on a typical trust or estate third party mortgage, here is a great example of a typical “Needs List” that I send out to our clients:
Copy of the Appraisal done for the Trust or Estate – If you do not have one, we can order one for you
Copy of the Trust and all Amendments (if applicable)
Copy of the Trust Tax ID Number (if applicable)
Copy of your ID
Proof of Repayment Funds or a Pre-Approval letter for future financing. We can also assist you with this if needed.
Copy of Insurance Declaration Page (we can get this before funding if you don’t have it handy)
Copy of Death Certificates so title can file an affidavit of death (we will need the originals for closing)
Bank Account information for the Trust (if applicable)
I always review the needs list with the client so that I may answer any questions they might have. On occasion, I also use my ESP to answer some questions they have before they even ask them. Here is an example of some commonly asked questions.
When conducting a third party private money trust loan, most clients have been instructed by their counsel that created the Trust to get the home appraised at the time of death. We can often times use that appraisal for our trust loan. Doing so saves the client hundreds of dollars and can speed up the trust loan process. Once I receive that appraisal, I submit it to our review department to confirm the value still holds true and that the home is in habitable condition. That appraisal review process typically takes 24-48 hours to complete. “What if we never got an appraisal done at the time of death?” GREAT question! I am happy you asked that…. we have can offer a few simple options for you. We can order an appraisal for you! Appraisals are usually completed in 2-5 business days; depending on the area where the home is located. A full residential appraisal typically costs between $350-$550, depending on the area, approximate size and value of the home.
A Copy of the Trust and all Amendments. This condition is only applicable when we are providing a mortgage to a trust. If a client does not have this information available, it is typically easy to solve by calling their Trust attorney and requesting them to email a copy over to me. Often times trust documents ranges from 5 to over 100 pages in size. I know it’s a pain if you are one of the lucky ones that have a very thick trust and no access to a scanner. To help we can always send you an overnight FedEx envelope so you can provide us with the trust documents that way. Once I receive the trust information, I review it with title and escrow. We confirm how many trustees there are and that they have the ability to sign on behalf of the trust. This review process typically takes about 24 hours.
The Trust Tax ID Number is the condition that I typically get calls from clients on the most.The most common question is “where I can find our trust tax ID #”. The Trust Tax ID Number is not typically in the Trust paper work. It is issued by the IRS. I usually request an old tax form from the client which shows that tax ID number. Some clients have accountants associated with the trust and can also them for the Trust Tax ID Number. The Trust Tax ID Number is needed because at the end of each year we send out a 1098 to each and everyone of our clients so they have it for tax season.
The reason why we ask for a current ID is to confirm that the Trustee name matches our clients. We also use it to confirm the mailing address on the ID.
Because our loans are typically “short term” loans we want to make sure that the client has a plan or the ability to pay off the mortgage. We request review either the most recent bank statement showing that the funds are available for repayment, or an approval letter from a license mortgage banker showing you qualify for permanent. We can also provide you with permanent financing if needed and assist you with getting approved.
The reason we require a Copy of the Insurance Declaration Page is because while our loan is out, we need to make sure that it is covered by insurance in case of damage or disaster. If a client has a hard time getting this policy, no problem. I can always move this to a funding conditions and help the client obtain a policy from the insurance agency. If the home is not currently covered by hazard insurance, we have a handful of insurance agents we can recommend that will take excellent care of the client.
We ask for a Copy of Death Certificates on every file because 8 out of 10 clients have not filed an Affidavit of Death on title. An Affidavit of Death is used to notify businesses, courts, and other places of someone’s death. This legal document is a sworn statement that legally states someone has passed away. The affidavit of death is typically used in conjunction with a certified death) In order to lend to the trust after passing, this must be filed before the new deed gets filed. This is a added service we do for all of our clients at no extra charge. We want to make sure that its done the right way, so years after our transaction you will not run into problems.
We ask for the Bank Account information for the Trust (if applicable) because we need to know where to wire the loan proceeds. Because the Trust is borrowing the money, the funds must go to the trust. We typically cannot send the money to an individual when lending to a trust. To be extra cautious we do call the Trustee at the time of closing and ask them to verbally give us the account and routing number. We do that to help prevent fraud. We do our very best to protect our clients. Some of the issues I have ran into with past clients on this, is the bank account has been dissolved at the time of death and the trust is no longer associated to a bank account. In that case we ask the borrowers to call their current banker and ask them to open up a new account in the Trusts name. If the clients have trouble with that, we can contact the attorney to help find a solution, that works best for that client (so far, we haven’t had to do that yet).
That was a mouthful! The most important thing to keep in mind is that I am here to serve you. I am also just a phone call away and you can reach me at 877-464-1066 if there is anything that you need. So here is a quick recap of the Commercial Loan Corporation loan process:
I send out needs list to the borrower
Get everything back on the needs list from the client
I open title and escrow (that comes back within 48 hours typically)
I then submit the appraisal for review to confirm value of home (that comes back within 24 hours)
I do a final review of all the conditions along with title and appraisal review
Once everything is verified, I call the borrower and attorney and give them great news that we are ready to wrap up the trust loan. I then confirm the loan amount, net amount and all fees and terms with both client and attorney.
Once everyone agrees on terms and fees, I draw loan docs and releases them for review to the client and attorney (turn time to draw loan docs in about 3 hours)
Once the Client and attorney give Commercial Loan Corporation the thumbs up on the loan docs, escrow will send a notary out to the client and sit with them while they sign the loan document package. The signing typically takes 30 minutes.
After the documents are verified, the loan is funded!
If you are in need for a third party loan to a trust or estate, please call us at 877-464-1066 so that we can assist you! We successfully help clients receive an exclusion from property tax reassessment every month and we can help you too!
Come meet Mike Riggs and Autumn Skerritt from Commercial Loan Corporation tonight at the Orange County Bar Association Trust & Estates Continuing Education Presentation. Tonight’s presentation will be Tips And Strategies For Practicing In Probate Court. This presentation is ideal for those of you who are new to probate court or those who are looking for a refresher. Tonight’s speakers include Alan L. Armstrong, Alan D. Davis and Gianna Gruenwald.
Mike and Autumn will be onsite to assist you with any questions that you might have pertaining to loans to trusts and estates. They will be at the Commercial Loan Corporation exhibit table out front of the presentation hall and look forward to seeing you there. The presentation will be hosted at the Chapman University, Fowler School of Law. Chapman University, Fowler School of Law is located at 370 N. Glassell, Orange, CA 92866.
Commercial Loan Corporation specializes in mortgages to trusts and estates to help facilitate a successful parent to child transfer and exclusion for property tax reassessment. If you have a question on or need assistance with a third party loan to a trust or estate and are unable to make it to tonight’s event, please feel free to call us at 877-464-1066 so that we can assist you.
Trust and Estate Loans – Beware of Prepayment Penalties
Trust and estate mortgages provide liquidity to an otherwise illiquid trust. This cash infusion to the trust or estate allows for an even asset distributions to be made. The equal distribution of a trust or estate becomes critical when one of the beneficiaries or heirs wants to take advantage of California Proposition 58 (parent to child property transfer) and benefit from an exclusion for property tax reassessment. Depending on the property’s current value, the parents assessed property tax value and the property tax rate; doing so could mean a savings of thousands or even tens of thousands of dollars annually! Here is an example of how it works.
Proposition 58 Exclusion From Property Tax Reassessment Example
Say your parent initially purchased the home for $75,000 and over the years the home has increased in value to $850,000. Thanks to California’s Proposition 13, the property’s tax assessed value can not increase by more than 2% annually. So even though the actual value of the property is $850,000 the County’s assessed value for property tax purposes may be only $112,000 (as an example). If the property tax rate for the area is 1.2% here is what you would be looking at:
Current Property Taxes = $112,000 x 1.2% = $1,344 Property Taxes If Reassessed = $850,000 x 1.2% = $10,200 Proposition 58 Exclusion From Reassessment Annual Tax Savings = $8,856
So if an equal distribution of the trust or estate can be made allowing for the child inheriting the property to qualify for the Proposition 58 exclusion from property tax reassessment, the savings in property taxes can be significant!
Finding the right Trust or Estate Loan
When it comes time to take out a trust, estate or probate loan, you have a few options and choosing the right private money or hard money lender may save you potentially thousands of dollars in fees and expenses! In almost all cases, Trust and Estate loans are intended to be short term financing options. The lender provides the trust or estate with cash, the assets of the trust or estate are distributed equally, and the beneficiary or heir files for the parent to child exclusion from property tax reassessment. Once the exclusion is granted, they are then able to refinance the trust or estate loan with out jeopardizing the low property tax rate that was transferred from the parent. Since these are short term loans, many of our competitors have chosen to charge prepayment penalties to make additional income on the loan. Worse yet, some trust and estate lenders will disguise their prepayment penalty by referring to them as minimum required months payments or set a minimum amount of interest requirement. Depending on the loan amount, those prepaid or required interest charges could add up to several thousand dollars. Commercial Loan Corporation charges NO prepayment penalties and has NOminimum interest requirements. Instead we do our best to provide you with flexibility when it comes to paying off your loan. In fact we will even recalculate your monthly payment for you if you pay down your trust or estate loan mortgage balance, allowing you to save on interest payments!
To learn more about trust and estate loans and why Commercial Loan Corporation is your best option when it comes to a trust or estate mortgage, please call us at 877-464-1066 or complete our trust and estate information request form at www.cloanc.com.