Asset protection using liens? - Posted by Wayne-NC

Posted by Wayne-NC on September 02, 2003 at 20:05:09:

Thanks. That is probably the best I could hope for. Between that and the umprella policy I should be protected as best as possible. I am aware of trusts, LLC’s, Corps, etc but each one of them have seperate problems and expense. For example, banks don’t like to lend to trusts or corps without better terms for them. Transfering title can raise red flags with existing loans and I don’t want to open a can of worms so to speak. My method is probably the most economical with the same amount of protection. As you said nothing is surefire.

Asset protection using liens? - Posted by Wayne-NC

Posted by Wayne-NC on August 31, 2003 at 12:31:43:

I read this on the other forum and also thought about it for a while before that, so now it is time to research. Is it a good idea to place liens or mortgages on real estate, autos, etc. with a relative as the mortgage or lien holder? They would appear as 2nd or third positions in the county records. Also, have executed satisfactions on hand in a safe place to release the liens in case of a sale. If all of my holdings had no equity, what could a judgement or attorney do if all my assets were leveraged to the max? Is there a way to adjust this to be a viable way to protect assets from liablility? I am also purchasing an umbrella policy for 1 mil but that only covers a home and 3 rentals along with the autos for $279 per year.

Re: Asset protection using liens? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on September 02, 2003 at 19:50:00:

Nothing is surefire. Such a lien gives the appearance of no equity and makes an attempted seizure of the property less likely. Anyone who actually discovered the lack of substance behind the liens could get around them. Also, unfriendly lienholders could cause problems (they only START friendly), even with satisfaction ready to go. All in all, not a bad strategy, but not surefire and not riskfree - nothing ever is.

John Hyre

Re: Asset protection using liens? - Posted by firefox

Posted by firefox on September 04, 2003 at 18:15:30:

Are there any issues when the liens have substance but the lender is owned by the same persons as the debtor? For example, by corp lends to my llc, with all notes, mortgages, and bank records (including initial funding to the llc and payments by the llc) one could want.