Washington court upholds home ownership ruling in $132,000 loan dispute between family friends

A private deal to help a family friend buy his first home led to years of legal battles after loan payments stopped. The dispute eventually reached state judges, who had to decide how the property should be owned and how the remaining debt should be handled. The legal dispute began with a 2018 deal between Lorrie D. Carlson and Sonny H.

Hwang in Washington state. According to court records from the Court of Appeals of the State of Washington, Division One, Carlson lent Hwang $132,000 to help him buy his first home. As security for the loan, Carlson took a shared ownership interest in the property. The two also signed a promissory note that set out the repayment terms.

Under the agreement, Hwang was expected to make monthly payments to reduce the debt. Once the full amount had been repaid, Carlson agreed to sign a quitclaim deed transferring her entire ownership interest in the property to Hwang. However, the arrangement eventually fell apart when Hwang failed to repay the loan. Official court records show that he missed his scheduled payments and later stopped paying altogether.