Possible Judgement...Can A Trust Protect Me?
I want to put my property in a land trust to avoid a judgement that will be entered against me very soon (within the next 30 days). Is this a good move? it is a personal judgement and this is one of my rental properties.
Will the judgement haunt me when I go to sell the house and they do a judgement search on me or does it not matter because the house is in a trust and will pass from the trust to the new owner. I am confused. Please help.
Thanks.
Brian
It is a civil judgement for a credit card. Citibank to be exact. Any advice based on that information? Thanks!
Brian
Hello Brian
Here is a link to an article I submitted earlier this month that may help you understand that which you can do.
Darryl
http://www.thecreativeinvestor.com/residential/Article969-The_Dual_Option_Multi_Party_Asset_Retention_Trust.html
this would have been a great idea to do before any precedings have started.
It is possible to file a motion to dismiss based on fraud purpotrated by the credit card compaines (TILA violations), and if a judgement is entered to enter a void judgement. As long as the file is still open they cannot put a lien on the property.
There are also ways to erase judgements and liens from public record.
Is the multi-tiered LLC the same as the DE series LLC?
Darryle,
with your D.O.M.P.A.R.T. did I misunderstand or is the buyer a straw buyer -
(see last paragraph of the Trust outline you provide in the article: "CHARLES DRAKE”) or his successor and or assigns (this could be you, your former trustee or another entity you control)
So Charles Drake or whoever the buyer is must be an entity the Seller controls correct or have I misunderstood?
i think thats exactly what he is trying to say....a family would suffice or an LLC which you ultimately control.
Guntherpurdue,
No the prospective buyer is not a straw buyer. The reason being is if it were so , said arrangement could be held to simply be a merger of title.
Guntherpurdue,
No the prospective buyer is not a person or entity the seller controls. However per the Option Contract in the event that seller is unable to transfer clear and marketable title, said Option Contract is breached and prospective buyer’s option fee is to be refunded. Subsequently any interest prospective buyer has in said property (real or personal) is assigned to an entity controlled by seller to be ultimately disposed of.
So if buyer is real then seller has lost control over the asset by encumbering it with an option -- what am I misunderstanding?
Seems a plaintiff could force foreclosure and seize the encumbered asset in any case, right?
Or if the $500K was prepaid at time of option signing (was it?) the plaintiff can follow that money correct?
So if buyer is real then seller has lost control over the asset by encumbering it with an option -- what am I misunderstanding?
No the Option Contract has what is referred to as an “Option Release Date”. The “Option Release Date” shall mean the first calendar day of any month within the Option Term, upon which SELLER has the exclusive right to release SELLER and BUYER from any and all obligations created by said Option Contract, whether or not said obligations are in existence.
Seems a plaintiff could force foreclosure and seize the encumbered asset in any case, right?
You are correct. However any new interest created by the seizure and foreclosure of the real property would be created subject to and subsequent to the Performance Trust Deed.
Or if the $500K was prepaid at time of option signing (was it?) the plaintiff can follow that money correct?
The $500k was not prepaid. It is simply the agreed upon option price.[ Edited by Darryle-CA on Date 09/04/2005 ]
So this Option is a two-way option (?weird!) and the Seller has an opportunity to outright cancel it once a month - still 29 days out of 30 seller has an encrumbrance on property, correct?
You are correct.
I just updated my profile to include my telephone number - which according to the rules of the forum I am not allowed to post here. Can you access it?
I do not believe that you can sign a Purchase and Sale agreement as the seller if you do not have the legal right to transfer the title (not the owner).
But still, the realtor was sneaky and I would talk to her broker because she circumvented the intent of your agreement.
All local Realtor Associations that I know of have ethics review boards - this would be something they should know about.
You absolutely have the right to market what you have the right to aquire.
[addsig]
I think the question was ... is the original purchase and sales contract valid. can someone sign a purchase and sells contract as the seller when they do not own the property?
Quote:I think the question was ... is the original purchase and sales contract valid. can someone sign a purchase and sells contract as the seller when they do not own the property?Brenda,
In my humble opinion, yes. The contract is valid as long as the seller can perform. Actually, this is done quite often.
For example, consider a sandwich lease option deal. The investor lease options to a tenant-buyer a property for which he only has an option to purchase. As long as the investor performs, no problem.