Posted by Kristine-CA on June 30, 2003 at 13:45:20:
Marcos: actually, the child support due is in judgments, not liens. Sorry about that, didn’t make myself clear. Thanks, Kristine
Perfecting title via foreclosure - Posted by Kristine-CA
Posted by Kristine-CA on June 30, 2003 at 13:21:37:
Hi everyone. This is just theorizing at this point. The deal I’m thinking of doing this with probably isn’t worth the time and expense, but I am wondering:
If I own a property in CA that I bought with liens that cannot be settled–in particular, child support liens–what if I sold it to an LLC and created a trust deed and then foreclosed on it? Wouldn’t that clear the lien? I get the property back via trustee’s deed. The LLC has, well, limited liability and would be only for the purpose of this sale. The title is clear and I can sell to someone else.
Seems like I read something about this on this site a long time ago. Does this ring a bell with anyone?
Sincerely, Kristine
The problem is… - Posted by Marcos
Posted by Marcos on June 30, 2003 at 13:33:42:
The problem is that your trust deed isn’t superior to those other liens. So, you can’t wipe them off. Look at it this way, you probably own your own home, you probably have a mortgage/trust deed to a bank for this property. If you put a new trust deed on the property, would foreclosing on it wipe off the trust deed to the bank??
The only way would be to buy something ahead/superior to the liens you are trying to clear. For instance buy a first mortgage, start to foreclose, take it to sale, and wipe off anything behind the first. Make sense?
Marcos