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    New York Land Owner's Avatar
    New York Land Owner Posts: 1, Reputation: 1
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    #1

    Jan 4, 2007, 12:52 AM
    Warranty deeds
    If I were to transfer my real estate with mortgages on them into separate LLC's and later get a default judgement or lawsuit against me. Can the person that has the default judgement against me lien the property in the LLC or cause me to have to sell the property now in the LLC? Thanks Jeff in New York
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Jan 4, 2007, 05:05 AM
    Hello Jeff:

    If the judgment creditor can prove that you moved these properties out of your name to AVOID the judgment, then they can attach them. No, you won't have to sell them, but if you ever do, they'll get theirs, plus interest.

    I don't think the mortgage lender is going to be too happy about transferring ownership to an LLC. They loaned the money to YOU, not the LLC, and if you do this, they will probably call the loans.

    excon
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Jan 4, 2007, 07:28 AM
    You cannot, legally, transfer property subject to a mortgage lien without the lienholder's permission. A mortgage holder is unlike to grant such a transfer. What you can do is have the LLCs obtain mortgage commitments, then buy the properties from you. Paying off the existing mortgages.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Jan 4, 2007, 07:43 AM
    This is of course fraud, since to own property and items of value that could be sold to pay off a debt and attempt to hide this property to protect its value is illegal.

    I am nost saying it is not done but it is not legal.
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