Selling a property from consolidated loan--how is this split?

[Cindy L.]

I'm a newbie at most of this, thank BP for your help!

We're in Missouri and held a consolidated loan where two properties and an overdraft account had been combined for us to make a single monthly payment. One year after combining, we sold one of the two properties. Is there GAAP or some other standards to determine the payoff on the single property? I thought the % each original loan had when entering the consolidated loan would be used to break apart the properties. It looks like this is NOT the case? Does having the <$1,000 unsecured overdraft loan cause a problem?

We also had the same issue in breaking apart a much larger consolidated loan to give each partner of an LLC specific properties. I'm still not sure how it was done, FMV on some properties, somewhat recent appraisal on others. Wouldn't it make sense to have each loan track independently within the consolidated loan, where breaking a property out is calculated based on it's initial loan amount? All of the properties had been held for years and had equity. There should not have been any issues with LTV for any property.

Thank you!