California Trust & Estate Bridge Loans

Posted on July 13, 2018 by admin

Trust and Estate Bridge Loans

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.

California Proposition 58 Parent to Child Transfer of Property Tax Rate

Posted on June 22, 2018 by admin

California Proposition 58 Parent to Child Property Tax Transfer

California Proposition 58 and Property Taxes

When inheriting real estate from a parent, one of the primary considerations in determining if you will keep or sell the property is often the expenses associated with the home. Typically one of the greatest expenses is the homes property taxes. In California, Proposition 58 grants qualifying children the ability to retain a parents low Proposition 13 protected property tax rate. Doing so could mean a savings of thousands of dollars each year. Commercial Loan Corporation helps beneficiaries and heirs qualify for their Prop 58 property tax benefits by providing bridge loans to trusts and probate estates so that an even distribution can be made.

Information About Proposition 58

In 1986, California’s Proposition 58 became effective and with certain limitations, it allows for the exclusion from reassessment of property taxes on real estate transfers between a parent and child. In the State of California, real estate is reassessed at market value if it the home is either sold or transferred. The property value reassessment may cause property taxes to increase dramatically in some cases. Preventing a property tax reassessment may save a beneficiary or heir thousands of dollars annually depending on the difference between the existing assessed value and the current reassessed property value. If the transfer of property is between a parent and child, under certain circumstances the property will not be reassessed if all required conditions are met. If applicable, an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize the distribution to qualify for an exclusion from property tax reassessment. An application must also be properly filed in a appropriate amount of time to be eligible for a Proposition 58 exclusion from property tax reassessment. When done properly, the new owner’s taxes are calculated on the parents established Proposition 13 factored base year value, instead of the current market value.

California Proposition 58 Limitations

There are some limitations to Proposition 58. For instance, on non primary residences transfers of the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this exclusion. Additionally, when applicable an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize a trust distribution. In the situation where fund are needed to make an equal distribution, a third party loan is required. That is where Commercial Loan Corporation can assist you by providing a bridge loan to the trust or estate. The Commercial Loan Corporation third party bridge loan provides enough cash to the trust or estate so that all parties can receive an equal portion of the trust or estate assets and enables one or more of the beneficiaries to receive the home as their portion of the distribution.

Additionally, Prop 58 defines a child as child born of the parent(s), a stepchild while the relationship of stepparent and stepchild exists, a son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law. Information found at https://trustandestate.loans

California Proposition 193

California Proposition 193 grants the same rights to a grandchild as Proposition 58 grants to a child. An eligible “grandchild” for purposes of Proposition 193 is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

There are some additional requirements and exclusions for Proposition 58 and Proposition 193. Please call us at 877-464-1066 so that we can assist you.

California Private Money Lender

Posted on June 14, 2018 by admin

CALIFORNIA PRIVATE MONEY LENDER

Bridge Loans For Trusts & Estates

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!

Customer Service

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.

Experience

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 is a Professional California Private Money Lender. Please call us at 877-464-1066 for assistance or click here to request additional information online.

Commercial Loan Corporation Will Make You Look Like A Hero!

Posted on May 24, 2018 by admin

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 3^rd 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 3^rd 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!

They can also apply for a Trust or Estate loan here.

Let us make you look like a hero!

California Estate Loan And Trust Loan Provider

Posted on April 27, 2018 by admin

Estate Loans and Third Party Loans To Trusts - Call Commercial Loan Corporation at 877-464-1066

Estate Loans and Third Party Loans To Trusts – Call 877-464-1066 For Assistance

Provider Of California Estate Loans

Thanks to California Proposition 58, a parent is permitted to transfer their low property tax rate to a child on an inherited piece of real estate. Unfortunately, in some situations receiving an exclusion from property tax reassessment can be easier said than done. Specific steps must be taken to receive your exclusion from your local County Tax Assessors Office and if they are not done correctly, you may lose your ability to preserve your parents low property tax rate. Commercial Loan Corporation specializes in providing loans to estates and trusts. These specialty private money mortgages assist our clients in qualifying for the Prop 58 property tax exclusion from reassessment. In addition to providing third party private money trust and estate mortgages, we can also put you in contact with a qualified estate attorney, probate attorney, fiduciary or California property tax consultant to assist you in qualifying for your Proposition 58 benefits.If you need an estate or trust loan, or have questions, please call us at 877-464-1066 or complete our information request form located here.

Proposition 58 Exclusion From Property Tax Reassessment

In 1986 California enacted Proposition 58. Proposition 58 allows for an inheriting property owner to avoid a property tax reassessment when acquiring real estate from their parents. The inheriting owner’s property taxes are calculated on the established Proposition 13 factored value, instead of the current market value, saving them potentially thousands of dollars annually. This is especially important if one of the children inheriting the property wants to either keep the home as a residence or as an investment property. If the parent has owned the home for an extended period of time, there is a high probability that Prop 13 has kept their property tax rate much lower than it would be if the property was reassessed at current market value.

Under Proposition 58, retaining a parents low property tax rate can become complicated when there is not enough liquid assets in the trust or estate to create an equal distribution to all siblings. In this situation a third party loan placed against the inherited home may be the only option to make an equal distribution. The additional cash made available from our 3rd party loan allows each of the siblings to receive an equal share of the assets. If the third party loan is not handled properly, the County Assessors Office may reject your request for a Proposition 58 exclusion from property tax reassessment and the property taxes will be calculated on the homes current assessed value. If you, one of your siblings or a client of yours is in need of a third party loan to take advantage of California Proposition 58’s exclusion from property tax reassessment, call Us at 877-464-1066. We specialize in providing private money loans to trusts and estates and can assist you.

Residential Property Tax Specialists

Posted on April 13, 2018 by admin

California Residential Property Tax Specialist, Proposition 13 and Proposition 58

California Residential Property Tax Specialists

The Importance Of Working With A Residential Property Tax Specialist

Working with the right business professionals can make all the difference. When it comes time to secure a Proposition 58 Exclusion From Property Tax Reassessment, through Prop 58, that could not be more true. The process of obtaining your exclusion from property tax reassessment can be littered with pitfalls. Even just one small mistake can be the difference between obtaining an exclusion or not. Retaining a Parent’s or Grandparent’s low Proposition 13 property tax rate can save you potentially thousands of dollars each year. That is why it is important to have a good Private Money Lender, Attorney and or California Property Tax Specialist on your side to help guide you.

When providing clients with a third party loan to a trust, we always recommend that they work with either a Trust & Estate Attorney, Qualified Trust Administrator and or a Property Tax Specialist. Attorneys and Residential Property Tax Specialists provide different services. Some California Residential Property Tax Consultants specialize in assisting clients in obtaining a Proposition 58 exclusion from property tax reassessment. Their expertise in these matters can be invaluable. The best of them even have experience working for the County as a Property Tax Assessor. This gives them a great deal of insight into what the assessors office will need in order to grant your exclusion. It can be especially helpful in complex situations where time is of the essence. In California, you only have three years to file for the exclusion from property tax reassessment. A long process can also delay the distribution of a trust in some cases.

The complexities of obtaining an exclusion from property tax reassessment should not be understated. Unless you deal with California’s Proposition 58 Exclusions From Property Tax Reassessments on a regular basis, it can be difficult to avoid mishaps. Here are just a few examples of issues that a qualified California Property Tax Consultant can assist you with.

Common Proposition 58 Exclusion From Property Tax Reassessment Mistakes:

Not conducting the 3rd party financing properly and causing a property tax reassessment to occur.

Not keeping track of each eligible transferor’s $1 million limit; thereby exceeding the $1 million limit and triggering a reassessment for the overage.

Avoiding situations where an acquiring beneficiary lends money to the trust when funds are needed to make an even distribution. The California Board of Equalization views this as a child buying out another child as opposed to a parent to child transfer. The exclusion for reassessment requires a transfer from parent to child.

These are just a few examples of circumstances where a California Property Tax Specialist can assist you. If you are in need of a third party loan for a trust, a qualified Trust & Estate Attorney or a Property Tax Consultant referral, please call us at 877-464-1066 so that we may assist you.

If you are a California Trust & Estate Attorney, Probate Attorney, Fiduciary, Estate Planner, CPA, Wealth Manager or Property Tax Specialist and would like to be added to our list of Trust & Estate Professionals, please use the following link to apply to become a Commercial Loan Corporation recommend Trust & Estate Professional. Credentials will be reviewed and verified.

Trust & Estate Professionals Link

Trust & Estate Professionals

Trust & Estate Loan Benefit Calculator

Posted on March 22, 2018 by admin

Trust and Estate Loan Benefit Calculator

Trust & Estate Loan Calculator

Are you are considering taking out a third party loan in order to equalize a trust or estate distribution and take advantage of California’s Proposition 58’s exclusion for Property Tax Reassessment? The act of doing so has saved some of our clients thousands of dollars annually and in most situations it makes sense to do so if you plan on keeping the home for more than just a few years. To make sure that the loan is financially beneficial, it is important to compare the costs of the loan with the expected property tax savings. At Commercial Loan Corporation we do not want to provide a loan to a client if it is not in their best interest and that is why we have created the Trust & Estate Loan Benefit Calculator.

Our easy to use trust mortgage calculator only requires you to enter a few fields of information and then does the rest of the work for you! Simply input the current value of the property in question, the number of siblings who have an interest in the property, the existing low Proposition 13 protected property tax rate and your desired loan amount. From there we can estimate everything from your Prop 58 Property Tax Savings, your proposed loan costs and the time it will take you to recoup your loan expenses. Here is an example of what our easy to use Trust Loan Benefit Calculator looks like:

Trust Loan Calculators

Try Out The Trust & Estate Loan Benefit Calculator

Our Trust & Estate Loan Benefit Calculator is free and easy to use. Click here to try it our for yourself. If you have any problems using the calculator, or have questions on trust or estate loans or would like to start the loan process, please call us at 877-464-1066. The Trust Loan Calculator is meant for estimation purposes only. When we speak with you, we will provide you with a detailed trust loan cost estimate and help you to determine you exact Proposition 58 property tax savings. Often times we are able to complete your trust loan process in under 10 days!

CALIFORNIA PROPOSITION 58 INFORMATION

Posted on March 15, 2018 by admin

California Proposition 58 Information

What is California Proposition 58 and how may it benefit you?

On November 6, 1986, California Proposition 58 became effective. Proposition 58, with certain limitations, permits the exclusion for reassessment of property taxes on real estate transfers between parents and children. California Proposition 58 is codified by section 63.1 of the California Revenue and Taxation Code. In the State of California, real estate or real property is reassessed at market value if it is sold or transferred. Property taxes can sometimes increase dramatically as a result of a property tax reassessment. Per Prop 58, if the sale or transfer is between a parent and their child, under limited circumstances, the property will not be reassessed, providing certain conditions are met and the proper application is filed in an appropriate amount of time. California Proposition 58 allows the new property owner to avoid property tax increases when acquiring property from their parents. The new owner’s taxes are instead calculated on the established Proposition 13 factored base year value, as opposed to the current market value.

It is important to be aware that there are some limitations to California Proposition 58. For instance, on non primary residences transfers are limited to the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be the result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this property tax reassessment exclusion. Additionally, for Proposition 58 there are limitations for who is eligible to receive these tax benefits. Here are the existing guidelines for Prop 58 relationship eligibility: A “child” for purposes of Proposition 58 includes any child born of the parent(s), any stepchild while the relationship of stepparent and stepchild exists, any son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law. For California Proposition 193, an eligible “grandchild” is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

There are additional factors that are important to consider when it comes to California Proposition 58 eligibility. For instance, the acquiring beneficiary can’t lend money to the trust when funds are needed to make an even distribution of the trust. The reason why is that the Board of Equalization views this act as a child buying out another child as opposed to a parent to child transfer. The child would no longer be eligible for the exclusion of property tax reassessment because the exclusion for reassessment requires a transfer be from parent to child. Often times the only solution in this situation is for the trust to take out a mortgage on real estate located in the trust to supply the trust with the cash needed to make an even distribution. This is not as simple as it sounds. The acquiring beneficiary does not own the property because the real estate is held in the trust. Almost all conventional lenders are opposed to lending to trusts. They will typically ask the trustee to put the title in the name of the acquiring beneficiary before funding their loan. If this is done before the even distribution of the trust, the exclusion for reassessment will usually be denied. Commercial Loan Corporation can help in this situation. Commercial Loan Corporation is one of just a handful of California Lenders who are willing to provide loans to trusts; in fact, we specialize in it.

What separates Commercial Loan Corporation from other Private Money Trust Mortgage Lenders is that our Trust Loans are specifically designed with our clients needs in mind. Our trust and estate mortgages enable our clients to take advantage of the Proposition 58 property tax benefits while at the same time avoiding steep pre-payment fees and interest rate expenses charged by many of our competitors. Commercial Loan Corporation charges no pre-payment penalties or specified required months interest prior to loan payoff. Additionally, we permit our clients to pay down their mortgage and will recalculate their mortgage payment for them based on the outstanding mortgage balance. This benefit alone can save our clients potentially thousands of dollars in interest.

If you, a client or someone you know could benefit from a trust loan, please call us at 877-464-1066 or complete the trust mortgage inquiry form located here.

Loans to Trusts To Avoid Property Tax Reassessment

Posted on February 14, 2018 by Joseph Minton

Trust Loans, Probate Loans and Estate Loans

At Commercial Loan Corporation we specialize in providing our clients with trust loans and estate loans. These trust loans are mortgages on real estate in a trust that provide liquidity to an otherwise illiquid trust at the time of distribution. This allows our clients to utilize Proposition 58 or Proposition 193 to transfer the property from a parent to child or grandparent to grandchild to avoid a property tax reassessment and maintain the existing low Proposition 13 protected tax rate. The following trust loan blog article provides information on California Proposition 13, Proposition 58, Proposition 193 and how Commercial Loan Corporation can assist you. For additional information or to begin the process of receiving a loan for your trust, please call us at 877-464-1066 or complete the trust loan information request form located here.

Proposition 13

Proposition 13 was passed by California voters on June 6, 1978. Property values were escalating in the 1970’s due to inflation. Property taxes were going through the roof because people were re-assessed annually at current market values. Proposition 13 froze property tax rates at 1976 levels and limited the increase in tax rates to 2% per year. Once a property was sold, the new tax rate was established at approximately 1% of the sales price and could go up no more than 2% per year.

Proposition 58 (and 193)

Proposition 58 became effective on November 6, 1986. It is a constitutional amendment approved by California voters which excludes from reassessment transfers of real property between parents and children.

Proposition 193 became effective on March 27, 1986. It is a constitutional amendment approved by California voters which excludes from reassessment transfers of real property from grandparents to grandchildren, providing that all the parents of the grandchildren who qualify as children of grandparents are deceased as of the date of transfer.

Why is this important?

Prop 58 and Prop 193 allows a child receiving a property from a parent (or grandparent) to avoid property tax reassessment. The child receiving the property will preserve the Prop 13 tax rate paid by their parents (or grandparents). The property tax savings for the child receiving the transfer of real property can be significant. Let’s say Mom and Dad has owned the family house for 20 years. If the parents bought the property for $200,000, their property taxes would probably be $2,900. That property could be worth $700,000 today. The property taxes would probably be $7,000. The difference is $4,100 per year.

What if the property being transferred is in a trust?

It doesn’t really matter that a property is in a trust. The transfer from a parent to a child will be viewed that same as a property not in a trust. The tricky part is when both parents have passed and there is more than one child (beneficiary). If the trust has assets other than the real property being transferred and those assets can be split among the other beneficiaries so that everyone gets an equal share; the child (beneficiary) taking the real property can probably qualify for the parent-child transfer exclusion afforded by proposition 58.

In the event that there are not enough other assets in the trust to equally divide the trust assets among the beneficiaries, the trust will need to borrow money so that there are enough assets to distribute equally to all the beneficiaries. This is called a 3^rd party trust loan. This is where Commercial Loan Corporation comes in. CLC is a California Trust Loan provider and CLC loans help preserve a low property tax rate when taking a property out of a trust.

Even though the child beneficiary taking the real property may have enough cash to lend to the trust so an even distribution can be accomplished, it is viewed as a buyout of the other beneficiaries and the real property will probably be assessed at the current sale price. The trust is required to borrow from a 3^rd party in this situation.

Pro Rata Distribution versus Non Pro Rata Distribution

A pro rata distribution of an estate is when each heir receives an equal portion of each asset in the estate. A non pro rata distribution of an estate is when each heir receives an equal proportion of the entire estate but not necessarily of each asset.

$1 million exclusion limit

There is no limit on the transfer of a personal residence.

There is a $1 million dollar limit for all other real property. This is based on the assessor’s value of the other properties as opposed to current market value. A parent may have used part of this exclusion in the past. The State Board of Equalization keeps track in a state-wide database. This can be checked by writing to:

State Board of Equalization
County Assessed Properties Division, MIC: 64
P.O. Box 942879
Sacramento, CA 94279-0064

For additional information on trust loans, probate loans and estate loans or to begin the process of receiving a loan , please call us at 877-464-1066 or complete the trust loan information request form located here.

Parent to Child Transfer and Exclusion for Reassessment of Property Taxes

Posted on January 3, 2018 by Joseph Minton

When a Property is Held in an Illiquid Trust

When the time comes for the distribution of a family trust, often times one of the children-beneficiaries wants to hold on to real property held in the trust. Usually, the property can be transferred along with the Proposition 13 tax base. This can save several thousand dollars in property taxes. If the trust has multiple beneficiaries and there are enough liquid assets to make an even distribution, it is a relatively easy process to obtain the exclusion for reassessment by filing the proper paperwork with the county assessor (Form BOE-58-AH).

What if the Trust is Illiquid?Keeping the exclusion for reassessment when transferring real property to a child-beneficiary can be trickier if there are not enough liquid assets in the trust to make an even distribution. The acquiring beneficiary may want to contribute personal funds to provide liquidity in the trust for an even distribution. This may not be a good idea. The Board of Equalization (BOE) may view this as a sibling buying out the interests of another sibling(s) as opposed to a parent to child transfer. The BOE may reassess the property in this situation. So what do we do? I am glad you asked me that. The BOE allows the trust to borrow from a 3^rd party (not one of the beneficiaries) to provide liquidity. The loan must be to the trust without a personal guarantee by the acquiring beneficiary. The BOE may view a loan with a personal guarantee by the acquiring beneficiary the same way it views a contribution of capital to the trust by the acquiring beneficiary.

Getting a 3^rd Party Loan
You would think this would be easy. Unfortunately, conventional lenders (banks, mortgage companies)

do not like to lend to trusts and their Deeds of Trust are written with alienation clauses. That means when title to a property changes, the lender can call the loan due. When a trust is distributed, the title to the property will change from the trust to the acquiring beneficiary and the alienation clause would be triggered.

Another option is private money lenders (hard money). These are lenders that have investors, usually individuals, willing to lend their money for a certain rate of return. These individual investors frequently have a requirement that at least 90 days of interest be paid. Some private money lenders charge a prepayment penalty to insure their investors receive 90 days of interest. Private money lenders will typically charge 2 to 3 points on top of the interest rate. This can get expensive.

Finding a family friend or relative that is not a beneficiary and is willing to lend money to the trust may be the best option (least expensive). Unfortunately, this may be just as difficult as finding a conventional lender willing to lend to a trust.

Commercial Loan Corporation will make these 3^rd Party Loans?

There are not many companies doing these loans currently (October 2019). Commercial Loan Corporation in Newport Beach, California is actively lending to trusts. We do not charge prepayment penalties, so loans can be repaid quickly to avoid paying above market interest rates. These loans are not cheap and we provide a cost/benefit calculator on our website. It is important to determine how much one will save in property taxes each year versus the loan costs. The calculator will show how many years it would take to recoup all of the loan costs with property tax savings. If the property will not be held long enough to recoup all of the loan costs, it does not make sense to get a 3^rd party loan. In most circumstances the property will be held much longer than the break-even point and the property tax savings will be a great benefit.

What are Commercial Loan Corporation’s Lending Criteria?

Property must be non-owner occupied.
Preferred loan amount does not exceed 65% of the property’s appraised value (Exceptions have been made for high credit score borrowers with liquid assets greater than the loan amount).
There is a plan for repayment by refinance or verified liquid assets (If refinancing, an approval letter is needed from an approved conventional lender).
Loans are recorded in the 1^stlien position (Loans in the 2^nd position are considered on a case-by-case basis).
Title insurance is required on all loans
Third party escrow is required on all loans
Appraisals completed for the trust may be acceptable with a review by a third party appraiser chosen by Commercial Loan Corporation.

Commercial Loan Corp, Provider of Trust Loans and Estate Loans

Your Source For Trust Loans, Estate Loans and Probate Loans

Tag Archives: Prop 58