Sam,
I think you should be getting with a good attorney to cover yourself since it sounds like this lender will file a lawsuit againest your asset to seize to repay the debt and or accelarating the note since you are behind…
Yes there is more you can do to protect yourself and of course I can not give legal advise but I would vest those properties into trusts to hide those other assets and do it soon since most attorneys will probably tell you it would be considered a fraudulent conveynce due to the timing of this action.
If you like feel free to call me at 702-400-7632 to discuss. I can help you with a trust for your real estate but as I said check with a local R/E attorney for help as well.
Good luck//
I had to sign a personal guarantee when I bought 3 duplexes here in Hawaii. Murphy’s Law came into play and I am now 6 months behind on the note of$2.5M.
The private lender is foreclosing (even though I told them I would sign the deed over today) because I think they want to attack the personal guarantee.
I know the new BK laws changed in Oct., but not quite sure what else to do to save my portfolio of properties I own. Currently they sit in Nevada LLC’s on the deeds with another one of my Nevada LLC’s having put sizable mortgages behind the currnet ones to suck up all the equity.
Am I missing something or is there more I can do to protect my empire?
Re: $2.5M Personal Guarantee - Posted by John Corey
Posted by John Corey on March 21, 2006 at 05:30:48:
The reason for the foreclosure might be something other than attacking you personally through the guarantee.
You did not mention if there are any junior liens, pending suits, or other actions that would transfer if you signed over the property. If the lender forecloses the junior liens will fall away.
So, the advice from colvegas about speaking to a lawyer is well worth the money. As you appear to have created some protection for the other assets (LLC and little equity on paper) you might less exposure than you would otherwise. If a RE attorney (a good one) can tell you what your exposure is you can rest a little easier and know that the attorney is now on the hook a bit for the advice.