Trying to prevent house loss - Posted by James B.-Chicago

Posted by Doug on December 15, 1998 at 01:20:04:

Erwin hit the nail on the head… Take his advice hes right…

Douglas Timko

Trying to prevent house loss - Posted by James B.-Chicago

Posted by James B.-Chicago on December 12, 1998 at 23:44:56:

My father is being named as a defendant in a lawsuit due to something my brother did wrong. My brother is 25yrs old. My father’s lawyer doesn’t think he has anything to worry about, but he is worried. He is 51 yrs old and his only asset is his home. He does’nt want to lose it because of some fluke. Can he put the home in my name to prevent it from being taken from him? Or can he use a trust to prevent it from being taken. I don’t know anything about trusts myself.
Please, any advise would be greatly appreciated.
James B. Chicago.

Re: Trying to prevent house loss - Posted by Rob FL

Posted by Rob FL on December 13, 1998 at 13:49:13:

Generally once a lawsuit has been filed against you, any transfer of your assets could be considered fraudulent and could be set aside by a court. I believe most states have homestead laws which prevent creditors from seizing the equity in you home up to a certain dollar amount. More than likely unless your father has substantial equity in an expensive home he shouldn’t worry about losing the house, but you should check your state laws to be sure. However, if the creditors get a judgment against him it could become a lien on the property and make it difficult for him to refi or sell the property.

Re: Trying to prevent house loss - Posted by Doug

Posted by Doug on December 14, 1998 at 05:15:09:

Well your dad would not be able to put the property in your name if he had a Mortgage on it as the Due on Sale Clause would be activated… Cant transfer owner without satisfactioon of the Mortgage. But he can transfer title to a trust to protect his asset without the due on sale( transfer) clause being called in…
I would seek another attorneys advice if I wasnt confident in this ones opinion… And if he is saying dont worry about it… I would worry…Any attorney who is that confident worries me because he is not preparing for the worst he is assuming there is no problem… I am a realist and I rather be safe than sorry… Good Luck to you
Douglas Timko

Re: Trying to prevent house loss - Posted by Rob FL

Posted by Rob FL on December 14, 1998 at 18:28:58:

Actually if you read the exceptions to the due-on-sale clause, it specifically allows parents to transfer their interest to children. So that would not violate the due on sale clause.

Re:Depends on which one he has. - Posted by Irwin

Posted by Irwin on December 14, 1998 at 07:34:42:

Lawyer, that is. There are good ones and bad ones. Some very bad ones. Which kind does Dad have already, and which kind filed the suit? Dad might be in good shape, or he might be in trouble and doesn’t know it.
He needs to sit down with Dad’s attorney and go over the case in detail, and let the lawyer explain why he thinks Dad doesn’t have anything to worry about. (Perhaps it’s and auto accident where there’s insurance coverage.) Perhpas post it on one of the legal newsgroups and get a few free opinions to compare with what the attorney is saying. If he’s still worried, then consult another local lawyer, who comes with good references.