enricosuave263
Junior Member
What is the name of your state? CALIF
A broker set up a $50k Note for which I was willing to put up a property in my own name as collateral for. So far, all business as usual. However, just before close of escrow, the Lender (private individual) wanted more collateral and wanted the deed to my other property added to the Note as well. So this was done to complete the loan for the $50k.
Here's the thing. That 2nd property is owned by my IRA Real Estate Trust account, not by me personally though the account is to "my benefit". Essentially, this property is simply an investment owned by my retirement trust.
If I were to default, I understand that the first property (owned in my personal name) can be sold to pay the debt. But I'm being told that if there is not enough equity in that property.., my 2nd property (owned by the IRA Trust) could also be forced into sale for collections.
Is this true? I had thought IRA/Retirement money is not available until I reach age 65. (I am 45 right now) Also, wouldn't that count as a pre-retirement 'benefit' if it was sold to pay off a pre-retirement obligation?
What it comes down to is.. is my IRA-owned property safe from a forced sale in the case of default if it's listed in the Note?
A broker set up a $50k Note for which I was willing to put up a property in my own name as collateral for. So far, all business as usual. However, just before close of escrow, the Lender (private individual) wanted more collateral and wanted the deed to my other property added to the Note as well. So this was done to complete the loan for the $50k.
Here's the thing. That 2nd property is owned by my IRA Real Estate Trust account, not by me personally though the account is to "my benefit". Essentially, this property is simply an investment owned by my retirement trust.
If I were to default, I understand that the first property (owned in my personal name) can be sold to pay the debt. But I'm being told that if there is not enough equity in that property.., my 2nd property (owned by the IRA Trust) could also be forced into sale for collections.
Is this true? I had thought IRA/Retirement money is not available until I reach age 65. (I am 45 right now) Also, wouldn't that count as a pre-retirement 'benefit' if it was sold to pay off a pre-retirement obligation?
What it comes down to is.. is my IRA-owned property safe from a forced sale in the case of default if it's listed in the Note?
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