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Collections Law/Collecting a judgement
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Question
I've learned that you can legally transfer real estate into revocable trust without violating the due-on-sales-clause within the deed of trust. If an civil judgement is placed on you for whatever reason can they cloud title if the property has been placed into a trust or is it legally out of their jurisdiction b/c the original deed was in your name personally and they can only collect from the legal person on the original note and not the recorder trust...sorry for the long sentence.
No, they may not place a judgment lien (against you) on the title if the property is in a trust. However, this must be done openly and not for the purpose of avoiding an active suit. In other words, you may not transfer the property in a trust if you are currently being sued to avoid attachment. If you do a judgment creditor may object to the transfer and have the transaction voided.
State law imposes a number of terms and conditions under which the trustee must act with regard to the trust property. Others are provided by the document creating the trust. The trustee is obligated to follow both the conditions imposed by law and those in the trust document.
First among the terms provided by law is that a trustee is a fiduciary, or a person who has a high standard of conduct and should act only for the benefit of the intentions of the settlor/trustor.
You will need to seek local counsel in your state by a qualified asset protection attorney for more specific advice.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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