Could possibly end up defaulting, will judge make me sell real estate?

[rabbit99]

I have about 200k in credit card debt and 400k in business loans. Some are bank credit lines and some are paypal loans, all unsecured. I resell on ebay but debt has gone up and sells down. If I default, can they make me sell my real estate property?

I own a home in Orlando where we we will be moving to, only 10% equity.
I have a rental in NJ with 30% equity and a rental in Delaware with 30% equity. $600,000 home, 410k owed to mortgage on both homes.
If they sue me, would the judge make me sell any of the houses?

 

[LdiJ]

I have about 200k in credit card debt and 400k in business loans. Some are bank credit lines and some are paypal loans, all unsecured. I resell on ebay but debt has gone up and sells down. If I default, can they make me sell my real estate property?

I own a home in Orlando where we we will be moving to, only 10% equity.
I have a rental in NJ with 30% equity and a rental in Delaware with 30% equity. $600,000 home, 410k owed to mortgage on both homes.
If they sue me, would the judge make me sell any of the houses?

Ultimately yes, you could be forced to sell the rental houses and perhaps even your home in Orlando.

 

[adjusterjack]

Any creditor who gets a judgment against you could conceivably foreclose on your properties to pay the judgment.

If the Florida home is your primary residence, you lucked out because Florida has an unlimited homestead exemption from judgment. Make sure you keep living in it forever.

There is no such exemption for rental property anywhere.

Your rentals in NJ and DE are at risk.

You might want to consider bankruptcy.

 

[rabbit99]

Thank you for the reply. Would the same apply if I did a cash out refinance on the home and only had 20% equity? Will the judge really make me sell them if hardly anything can be collected? What if I sold the houses before getting sued and withdrew my cash or bought bitcoin?
Is there a scenario where I don't have to sell the houses?
Hopefully It does not come to this and I don't wish to dodge debt, but I have 3 kids to care for and I will do what I must.

 

[LdiJ]

Thank you for the reply. Would the same apply if I did a cash out refinance on the home and only had 20% equity? Will the judge really make me sell them if hardly anything can be collected? What if I sold the houses before getting sued and withdrew my cash or bought bitcoin?
Is there a scenario where I don't have to sell the houses?
Hopefully It does not come to this and I don't wish to dodge debt, but I have 3 kids to care for and I will do what I must.

The bolded would be serious fraud that could get you jailed. Bottom line, the houses (other than your personal residence) are assets where the equity can and should be used towards paying your debt.

 

[BuyLowSellHigh]

I believe you have to live in Florida for 2 years before filing bankruptcy in order to claim homestead exemption. If you are currently living in a state other than Florida but plan on moving to Orlando, then you need to consult with an attorney. Perhaps a Florida attorney that specializes in asset protection.