Posted by John Merchant on February 12, 2009 at 09:27:39:
Forgot to say that a Lis Pendens (litigation pending)should be immed. recorded just subsequent to the other suit, and this is the doc that freezes any other action on the mentioned RE.
A title co. LPO sees the Lis Pendens and will go no further until it’s released so that’s what I’d do right now.
IRA Owned Property safe from Trust-Deed default? - Posted by Henry
Posted by Henry on February 09, 2009 at 10:53:21:
A broker set up a loan over a year ago for $50,000 (hard money) using a property owned in my name as default collateral. I’m ok with that. But then asked to add my IRA-Owned property as part of the Note as added collateral. We were short on time, I told him it could be added as reference to my holdings but that it couldn’t be sold in case of default due to IRA regulations.
Now, a year later, owner of the Note wants to sell the IRA-owned property because it has no 1st lien to satisfy the $50k Note. (balloon payment now due).
My question… the Note lists my IRA-property (along with my other property) as a First-Deed Trust with power of sale. Does that over-ride IRA regulations protecting my property as a non-recourse asset? Is my IRA property safe from being sold to satisfy the $50k Note?
Really need help on this.
Not if IRA was on title - Posted by John Merchant
Posted by John Merchant on February 09, 2009 at 18:19:23:
An IRA (or any other kind of “qualified” retirement plan) and its assets cannot be garnished, seized, foreclosed upon, etc. as that asset is not YOURS but your retirement plan’s.
But if it’s listed security on a loan, then a normal DOT foreclosure might be adequate to get the title foreclosed upon.
In order to protect that asset I’d file suit NOW “to clear title” and petition the court to find that it is not legal security for the loan.
It’d be interesting to ask a title officer (lt’d practice officer, or LPO)about this to see how your local title co. would view this.
As per IRA law your signing for it in that DOT would have been a legally invalid maneuver as YOU didn’t have the legal authority to do so.
I’m thinking the lender’s title co. screwed up if they said the DOT on it was valid and that T policy is likely going to have to pay off.
Re: IRA Owned Property safe… ? - Posted by Henry
Posted by Henry on February 09, 2009 at 10:56:43:
P.S. … Both properties are in the state of California.