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Can you avoid property lien with the help of quitclaim deed?

I recently became disabled and have lots of medical bills from complications due to heart surgery, my income has gone from over $75,000/yr to about $9000/year. Some of the my bills are in collection, the only thing I have left is my home, if I were to quit claim to my daughter, would that prevent creditors from placing liens on the property because of my bills? There are no pending suits or anything like that at this point. Is there a better way to protect the property?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I think you cannot stop creditors from placing a lien just by quitclaiming property.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Pam,

Welcome to our forums.

Since you have incurred the debt, your creditor may seek a civil judgment against you or try to garnish your wages. Even if they do not seek a judgment, they have a claim on your assets since you have not been regular on your payments. You may try to transfer the property to a trust or to someone else but the creditor may claim that it is a fraudulent conveyance leaving the transfer aside. In this situation, the term "fraudulent conveyance" does not imply that it's a criminal act. Fraudulent transfer occurs under the following circumstances:

1. You transferred the property thereby intending to stop or prevent collection attempts from your creditors.

2. You transferred property to a third party and for less than it's worth and after doing so, you became insolvent, that is, a state wherein your debts exceed your home.

Good luck

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larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Quitclaim is not a solution here. If you want to quitclaim then you have to clear the lien before signing the quitclaim deed. And if you want to sell the property then you have to pay the lien at the closing. So I think you should better pay it off somehow.

Thanks,
Larry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my mother has cancer and will not live long and has no burial insurance. she has lots of credit card debt . she owns her home.so can she sign her home over to me so i will be able to sell it to pay her funeral expenses and not have the credit card people come after it. i wont be able to pay for her furneral without it.

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Jane.

Credit card debts are unsecured debts. So if they have not place a lien yet then the credit company cannot come after you for the due debts after your mother signs the deed to you. So ask your mother to quitclaim the property toy. By the way is it a mortgaged property?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If mother passes away with the house still in her name, can the creditors come after the house? We need money for funeral expenses. We need to be sure to have the money from the house for that reason.
Thank you for your help, Jane

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liaoyu03's picture
liaoyu03 | Joined: September 9, 2007 08:43 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

yes, lender is not fool, they don't allow quitclaim on a home whoes owner have had a debt. so ,you cannot prevent your lender to places liens on your home by quit claim.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I had a voluntary repo on an auto ad the finance company wants to place a lien on my home until the difference of the auto's value and what they sold it for is collected ! Can this actually happen or is it just talk?

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Pillpusher,

I don't think the lender can place a lien on your property. I'm not aware of any auto mobile contract that gives the lender a right to place lien on your home. No one would put his house as collateral to purchase a car. But, they can sue you for deficiency. However, the laws vary in different states. Thus, it's better to consult an attorney in this regard.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have 2 liens on the property I live in... my dads name is on the loan, his name is of course on the deed and so is my name and my sons. Can I quit claim my name off? how do I get the judgements to go away? it is credit card debt. Thank you

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi denise,

You can quitclaim your share in the proeprty to take your name off the deed. But as your name is not on the loan, you will not be held responsible for not paying it. You need to pay off the debt in order to remove the lien from the property. Why don't you go for a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] (probably a cash-out one) and pay off the credit card debt? That seems to be an option you have with you.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY FRIEND HAS BEEN PLACED ON DISABILITY DUE TO MULTIPLE MEDICAL PROBLEMS INCLUDING TERMINAL CA. SHE IS SOON UNABLE TO PAIN HER LOAN SHE TOOK OUT TO PAY OFF HER OTHER DEBTS AND HER 1 CREDIT CARD. CAN THEY TAKE HER INTEREST IN OUR HOME OR PLACE A LIEN WHEN SHE CAN NO LONGER PAY

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi TROUBLED,

I believe they can put a lien on her interest in the home, if she fails to remain current on the property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I OWN SEVERAL PROPERTIES ANY OF WHICH IS MORE THAN ENOUGH TO SATISFY THE SUM OF THE JUDGMENT IS IT ALL RIGHT TO TRANSFER ONE OF THESE PROPERTY TO MY WIFE

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

IF I OWN ENOUGH PROPERTY OTHER WISE WOULD IT BE CONSIDERED FAUD

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi ROBERT!

Welcome to forums!

If you quitclaim the property in order to avoid creditors, it would be considered as a fraud and you will be penalized for it.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I currently own a failiing business with a partnert. We are in the process of possibly letting it go. We still have 4 more years on the lease left and am scared the landlord might want to come after me. However, my wife and I would like to purchase a home. My parents have agreed to help with a downpayment. My wife currently is a homemaker and student therefore she will not be able to acquire the loan in her own name. Since I am the sole breadwinner I will have to apply for the loan jointly. Is there anyway to make this work where I can safeguard this home purchase. Meaning If we purchase the home and at closing I quitclaim the home to her is that still considered fraudulent transfer? Does the landloard have any way to come after the home if I quitclaim it to her after buying the home?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mani!

Welcome to forums!

If you quitclaim the property to your wife at the time of closing, the lender may want your wife to be a co-borrower of the loan. But you've mentioned that your wife is a home maker and thus, she won't be able to show any kind of income. A stable income is one of the major criterion to qualify for a loan. If she does not qualify for a loan, the lender will not allow her to own the property as a whole.

Feel free to ask if you've further queries.

Sussane

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indnracn2's picture
indnracn2 | Joined: July 4, 2009 04:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

my wife has excellent credit. so even if we both jump on the loan or i co-sign the loan the lender may not let her own the home as a whole. I thought the lender is concerned with the asset of teh home and the borrower. If she becomes the whole owner but they have me as a borrower with my name on or off the title how would that affect the lender. I am sorry i am very new to purchasing and this will be my first home so i am jujst curious the best way aroudn this?

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indnracn2's picture
indnracn2 | Joined: July 4, 2009 04:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

i forgot to mention indnracn2=mani sorry i wrote the original post with out signing u8p for this valuable site

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi indnracn,

A lender is concerned about both the collateral as well as the borrower. Lenders always want that the owner of the collateral and the borrower of the mortgage should be the same person. This helps in safeguarding the interests of the lender. If the collateral is in your wife's name but the mortgage in your name, the lender won't be able to takeaway the property in case you default the mortgage. This is because the property is in your wife's name.

Take care.

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indnracn2's picture
indnracn2 | Joined: July 4, 2009 04:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

ok that makes alot of sense sara thank you. so then the real question comes back to me is how would really prove fraud. I mean if I am currently not in any litigation, and purchase a home and quit claim it over to her and say in 6 months get sued would it really be considered fraud?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi indnracn!

Welcome to forums!

If you are presently not into any kind of litigation, then purchasing a property and transferring it to your wife won't be considered as a fraud. But you won't be able to transfer the property, once you are involved in a litigation.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you owe money to a credit card company, but they do not have the original documentation to prove it is your debt,can you be forced to pay the debt?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi sebastian,

If they cannot prove that you owe the money to them, then they cannot force you for the payments. If they are forcing you, then that would be illegal. I would suggest you to contact an attorney and take his opinion in this regard.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband coerced me to [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] on one of our properties to avoid the lien on our residence home, which is in foreclosure, to collect from the other property; is it illegal to do that? How can I claim back the interest in the other property?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi matrona,

Transferring property just to save it from foreclosure or other liens can be considered as a fraudulent act by the creditor. If you want to claim your interest in the property, then you'll have to ask your husband to sign a quit claim deed and add your name to it.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I recently spoke to a consumer law attorney and he stated that if you suspect that there could be a lien put on your home because of past due medical bills, and not able to file bankruptcy do a quickclam into someone else name and have a living will made that if they pass away the property will be inherited by you. Hopefully this will buy you time to get through the statu of limitations for your state.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Sorry folks for the spelling errors! Need to slow down.

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Dolly,

If you quitclaim your property to someone else, then you won't be able to file bankruptcy immediately. You will have to wait for at least a year prior to [url=http://www.mortgagefit.com/know-how/filebankruptcy.html]filing bankruptcy[/url]. Also, you shouldn't transfer the property, if any of your creditors is planning to file a lien against you as that would be considered as a fraud. I would suggest you to take the opinion of any other attorney before taking a decision.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can I sell my properties to my minor children or wife and they be free from anything under my name.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi riversmom!

Welcome to forums!

You won't be able to sell property to your minor children, but you'll be able to sell your property to your wife. Once the property is not in your name, your creditors won't be able to come after the concerned property.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother passed away a year ago My 3 siblings & I have been trying to sell the house. Now my 2 sisters are having a financial disagreement. One sister wants to place a lien on moms house so the other sister won't get monies due whenever the house sells. Won't this also stop the rest of us from getting monies due?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

If a lien is placed on the property, then while it is sold off the lien needs to be satisfied first. After that, the others will be able to claim their monies.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have defaulted on a business loan and have never used my house as collateral can the lien holder place a lien on my home? and if they can how long does it take them to do so pls advise thank you ganth

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi tal,

The lien holder can place a lien on your home in order to recover his dues. However, in order to do so, the lender will have to file a lawsuit at the local court and get a judgment against you.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I do anything to stop the house (prior to any judgement) from being liened for a private student loan?They do not want to work with the unemployed and the house is mortgaged to the hilt!

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome bob,

Unless both of you workout a payment plan between yourselves, it will be difficult for you to stop them from placing a lien on your property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

a friend of mine invested in a property i owned which we were going to flip My name was on the deed to bank. Then I gave her another deed of Trust to property 3rd mort. The property was foreclosed on in 2007. now the 3rd holder is sueing me for her portion of the investedment.If awarded a judg.Can she lien proterty I have inherited with my two brothers

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mosey,

If the third mortgage is in your name, then the lender has all the rights to come after you to recover the debts after the foreclosure of the property. If the lender gets the judgment, then he can obviously be able to place a lien on the property.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Spouse has significant unsecured credit card debt in her name.. I have no debt and a significant income. Can I have her quit claim her portion of the house to me and protect the home from having a lien placed on it. There is no lien at present.

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi bigbird!

Welcome to forums!

If there are no liens on the property at present, then you can ask your spouse to transfer the property to you. Once the property is transferred to you, the creditors of your spouse won't be able to place a lien on it.

Feel free to ask if you've further queries.

Sussane

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