Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Have wealthy girlfriend who is always telling me to keep a small mortgage on house so it can not be taken in a lawsuit.This is an urban legend idea,right?
Have wealthy girlfriend who is always telling me to keep a small mortgage on house so it can not be taken in a lawsuit.This is an urban legend idea,right?
Pretty much. There is a thing called homestead that prevents seizing some part of a home in a legal action. In Florida it is pretty much the whole house. Not everywhere though.
Florida is the best state that's why people that owe 10 million to many creditors tie up all their cash in a very expensive house with little worry about creditors ever being able to seize it...other states you can Homestead which protects a certain amount of equity,but all in all it is difficult to lose your home to lawsuits,you may still have to pay the judgement but they are generally blocked from forcing you to sell,they generally can only collect when you actually do sell or try to refinance....if she is wealthy then chances are she has been sued in America so her advice actually is good...but the best protection is to not own the house at all,put it in a trust or LLc and control it from a distance...
Have wealthy girlfriend who is always telling me to keep a small mortgage on house so it can not be taken in a lawsuit.This is an urban legend idea,right?
What you stated, by itself is wrong.. if you want to keep your house judgment proof, the rules vary state by state.
Overall though, keeping a judgment on a home does offer some protection from a lawsuit, but if you want to keep it from being taken, you keep a large mortgage on it, not a small one.
With a small mortgage, nothing keeps a creditor from forcing a sheriff sale.
Someone can double check me on this but I think if you keep your home in trust it can't be taken in a lawsuit.
That depends on if the creditor can find out who owns the trust or not. If your a creditor of the trust, any lawsuit becomes a judgment, and judgments can mean forclosure against assets... Finding your assets is the key.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
