I own 3 rental properties outright-all in just my name. We want to let our own home go, we are not underwater nor late in any payments. Our home is also just in my name. This is because when we bought the 4 houses, my husband had no health insurance-he does now.
Can I quit claim the 3 rental houses to my husband now since we are not behind at all in our house payments, or is there a certain amount of time that has to pass due to people doing this to avoid banks putting liens on property other than what they have loaned money on? This is in South Carolina. Thanks so much.
if you're not underwater or behind in payments, why don't you just sell the house? Perhaps I'm misunderstanding, but it seems like that would put some can in your pocket and you wouldn't have to destroy your credit.
If the bank gets a judgment for any deficiency amount (money they lose by foreclosing on your house), that judgment, just like any other judgment, becomes a lien on any property you own. Could you QCD the properties out of your name and into your husband's name to avoid this, probably. Talk to a Local RE attorney about your situation.
I'm confident that the chain of title showing that you put them into your husband's name will be plaintiff's "Exhibit A" in their lawsuit against you to invalidate the transfers.
South Carolina is a deficiency state and they could come after you, especially knowing you have three free and clear properties you transferred to your husband to try to avoid any possible lien.
You aren't making sense though, if you aren't underwater, why would you let it go and risk the lawsuit? Lying would get you into trouble so, you'd have to disclose your properties/assets to the courts.
Ron, to answer you first. You know how someone who gets a life insurance policy cannot commit suicide in the first 2 years-or the policy won't pay?
I wondered if transferring property was like that. Obviously you don't get foreclosure papers and then run transfer property, but since this is before any missed/late payments?
@Jane, I believe @Ron is correct and that they could easily prove in a lawsuit that your "intent" was to keep those properties from getting a lien on them. 99% of the time it's the intent that the courts look at and in this case they would have a good case, particularly if SC is a deficiency state which someone mentioned.
I get this question all of the time on LLC's and insurance. I have an LLC why do I need to provide liability insurance of any sort, I'm protected! Nope, a judge will shut that down quickly, you must be able to pass the "reasonable person" test.
@Jane Cartier I agree with some of the previous posts... Don't really understand why don't you sell the property if you are not under water? Also I think @RIchard Roop and @Ron S. are correct if the curt finds out you are opining yourself to a lawsuit. I am not an attorney nor I invest on South Carolina but I think that is something it could easily come up and hunt you.... Wish you the best!
New solution may be an option. A good friend [15 years] husband and 4 year old want to buy house. They want to pay the mortgage payments, electric, all that, but nothing through a real estate agent or attorney.
Is this legal?
Is it kosher?
I have a homestead exemption on this house and don't know if that would carry over.
Amount owed on house-$117, 000.
Zillow right now $274,000.
Payments just above $1100, and go on darn near forever due to we had a mortgage modification a couple of years ago due to medical bills.
These people know they don't just pay til $117,000 is paid off, but until my mortgage is paid off.
Thanks, I pretty much need to know this info today. Jane C
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