Posted by Jim on June 09, 2009 at 11:30:26:
Having no experience in law suits, I was wondering about the potential money trail problem.
Does a performance TD spell out what needs to be performed in the body of the document? If so, what would be an appropriate performance? Does the option to purchase need to recorded as well?
Are you suggesting using the performance TD to foreclose because of non-performance, in order to wipe off any potential judgment? Or simply exercise the option to purchase to wipe off the judgment?
Rick, what do you think of using a blanket performance TD to encumber all of my properties?
Asset protection advice if title is in your name - Posted by Lionel Bush
Posted by Lionel Bush on May 28, 2009 at 14:38:08:
Mr. Bronchick, I own several small rental properties that I took title to in my own name several years ago. In this lawsuit crazy world that we live in, I’m very concerned about asset protection, so I recently formed a LLC. Since I’ve lost the advantage of privacy from public records that a land trust might have offered, and I manage these properties myself, I’m wondering are there any advantages to moving my properties to a land trust at this point or should I just transfer title to my LLC?
Re: Asset protection - Posted by Jim
Posted by Jim on June 07, 2009 at 14:42:30:
You can record a blanket deed of trust encumbering all of your properties with a “friendly” beneficiary (lender) securing a “straight” promissory note for a large dollar amount.
This would have priority over any subsequently recorded judgment. The idea is for a potential creditor to lose incentive to sue you because you have no equity in any of your properties. If a judgment is obtained and recorded, it will be subordinate to the blanket deed of trust. One potential use of the blanket deed of trust is to have it foreclose wiping off the judgment against the property.
Bonchick doesn’t live here anymore… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on June 02, 2009 at 19:28:40:
…apparently.
You can search the archives to see the last time he posted however I don’t believe that it was anything recent.
It’s kind of misleading to list him as a moderator, IMHO.
Re: Asset protection - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on June 09, 2009 at 09:38:11:
…Or, you could essentially do the same thing by recording a performance TD securing an option to purchase.
Should there ever be a debtor’s exam, opposing counsel would haul your friendly lender/beneficiary into court and demand to see the money trail. Since there probably wasn’t any money involved, they’d bring that asset back into the suit faster than **** thru a goose.
Re: Bonchick doesn’t live here anymore.–WHY?.. - Posted by Jack-E
Posted by Jack-E on June 06, 2009 at 17:26:43:
A very astute observation. How about it site owners’?