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Guest

I live in Texas. I own two small properties. One is my primary residence (with a homestead exemption). The second property used to be my primary residence but I kept it as a rental. I have lost my job and have not been able to find another permanent one. I have been living on savings to make ends meet. Unfortunately I have had to stop paying my credit cards due to not having any money left over after paying living expenses/mortgage. I am about 5 months behind on my credit card payments.

I have tried to sell both properties but haven't been able to in this market. The rental income on the second property covers the expenses on the property (mortgage & taxes) but leaves nothing extra. Savings and occasional odd jobs pay for living expenses and the mortgage/taxes on my primary residence. I am not behind on either of the two mortgages and I have a little equity in both properties.

Question is: In Texas, my primary residence is protected from creditors by the Homestead Exemption but I am worried about the second property. Is it possible to transfer ownership, say to a family member like a son or daughter with a quitclaim deed (but still keep making the payments and the mortgage in my name) to protect the second property from credit card companies putting a lien on it or forcing a sale? I'm trying to protect the equity in my properties until I can get back on my feet and start paying my credit cards again.

Any help is greatly appreciated!

jameshogg · Posted: Wed Apr 01, 2009 9:56 pm Post subject:

Hi Guest,

If you transfer the property to your son or daughter with a quitclaim deed, the lender would want your son or daughter to refinance the mortgage in their name. Moreover, if you transfer the property just to save it from your creditors, it can be taken as a fraudulent transfer and you can be penalized for it.

Thanks

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