Can creditors take my property?

[SI2009]

What is the name of your state (only U.S. law)? Florida

I went through foreclosure 6 months ago, had an equity line of credit and a mortgage.... lost majority of my savings in very well established stocks, never saw it coming turning out that way. Let my mortgage company and the bank know what I was going through... tried to do a short sale, no results, my property had lost over HALF of its value... requested bank to do a Deed in Lieu of Foreclosure. My main mortgage bank holder agreed but the bank that held the equity line of credit didn't... tried to make good on the payments for awhile, then lost the rest of my savings due to not being able to obtain enough work.... So, I ended up having to go through Foreclosure because it didn't help that my interest rates went up, it was not a fixed rate. It was a 2 year teaser 1% rate loan. I originally was going to sell it within the 2 year mark but the bottom fell out in real estate. I had invested almost $50k in the down payment and closing costs when it was all said and done, not including the mortgage payments I made for those couple of years. moved out of property and moved into my uncle's place where he tried to help me get back on my feet by providing a roof over my head.

Court was 6 months ago, spoke with Judge, was told nothing could be done except to speak to bank... bank didn't want to help... lost my property.

Ever since, I check my credit report religiously... up to the point before the foreclosure I had PERFECT credit 750+ score... went through foreclosure, dropped down to 630s.... I was still paying my main credit card minimums for as long as I could, finally couldn't keep up anymore.... called my creditors and explained what was going on.... couldn't do a settlement, didn't have enough money to do anywhere near what they wanted....

The debt on the foreclosure and the equity line has been Charged Off.

Credit cards are showing up as being late currently.

My uncle is really feeling for my situation... hes financially okay. Tells me he wants to help me get back on my feet, knows I can do it with time. Says he has one of his investment properties that he owns outright that he would be willing to let me purchase and live in for free in the mean time until I get my footing back up.... basically, hes planning to let me take possession of ownership and when I get myself back together I will start to pay him back.

Heres the question, even though I've been through foreclosure and I just went in default with my credit cards ( the credit card debt is under $10k ), can the property be placed in my name? It would show with no mortgage, he is going to be helping me out.... it would not be like a bank mortgage where it is held by a lien, it will just be placed in my name as owner paid in full.....

Can the bank come after me even though they took my property in judgement already 6 months ago that has been charged off? and the credit card debt, can they somehow take the property or put a lien on it? How does this work? can I be placed under a different alias? I've talked to realtors that say they put them self as their full name and make it an LLC... could making an LLC protect the property from being taken?

This would be homestead as my PRIMARY residence... if that helps.

Feedback would be very much appreciated.

[debtcollector`]

Originally Posted by SI2009

...

Feedback would be very much appreciated.

You really should talk to a lawyer about asset protection strategies.

DC

[SI2009]

Originally Posted by debtcollector`

You really should talk to a lawyer about asset protection strategies.

DC

Thank you very much for your information.

Before actually taking the route of speaking to an Attorney which is quite difficult since my funds are extremely limited right now - is there an Attorney here that can provide me with some free information on asset protection strategies?

Would doing a Limited Liabilty Corperation under my name protect me in this case?

[GaAtty]

This sounds like a good time to do a chapter 7 bankruptcy. Most bankruptcy attorneys do not charge for initial consultation. A ch.7 would get rid of the credit card debt (and remaining mortgage debt, if any).

[bigun]

Asset protection works best when you actually have assets to protect. You really have nothing.
First thing I'd do is not invovle my uncle or anyone else in my financial problems. If he's kind enough to provide a roof over your head then, gratefully accept the assistance but make no move towards transferring ownership until this mess is straightened out.
You don't say if you have a job. If not, that's your first priority.
Once you can support yourself and have health insurance benefits then, explore a Chapter 7 bk.

[SI2009]

Originally Posted by bigun

Asset protection works best when you actually have assets to protect. You really have nothing.
First thing I'd do is not invovle my uncle or anyone else in my financial problems. If he's kind enough to provide a roof over your head then, gratefully accept the assistance but make no move towards transferring ownership until this mess is straightened out.
You don't say if you have a job. If not, that's your first priority.
Once you can support yourself and have health insurance benefits then, explore a Chapter 7 bk.

I feel as if filling for Chapter 7 seems abit overkill considering I have $7500 in credit card debt and the mortgage loans have been charged off already. Its not student loans or an installment loan.

Work will be starting to pick up again shortly as I will be doing some real estate work for my uncle since he owns various real estate. I've also thought that maybe I can do a settlement with my creditors since the balances I owe are not that high and I usto pay only 8% interest rates with them & I never defaulted until just recently because of lack of funds.

I left the property I had owned 2 months prior to my foreclosure date and moved in with him. He has helped but feels I can make it back on my own and because he has property that is vacant & understand my situation, he wants to help me by transfering ownership so that I can then take responsibility of it on my own and he'll cover me in the mean time until I'm established working for him.

So, the main question here.....

The plan is to have it transferred over to me as having full ownership.... I will pay him when I start to get income from working. He is married and semi retired. I don't feel the need to be a "burdon" in a sense by continue to stay here, he understands that I usto manage on my own very well without any ones help... he knows how I need to get my footing back up and I want to have this to help myself.

So, without having to do Chapter 7, my credit cards are unsecure debt.

Can I setup an LLC and put the property in that to protect me? I mean, this is NOT going to be some investment property as I AM going to be using it as my primary residence.


If you were truly in my position, what would you do?

[bigun]

Just because the lenders chargedoff the mortgage, does not mean they can't try and collect a deficiency balance. If Fl. is a recourse state, they can sue you for any deficiency.
Speak with some Fl. lawyers that do asset protection.

[SI2009]

Originally Posted by bigun

Just because the lenders chargedoff the mortgage, does not mean they can't try and collect a deficiency balance. If Fl. is a recourse state, they can sue you for any deficiency.
Speak with some Fl. lawyers that do asset protection.

Thanks for the info.