Yes, the bank can place a judgment lien on any other property you own. They can then foreclose on the new property.
Don't have your parents give you the house now. If you want to live in it soon, draw up a lease and pay them rent. Declare bankruptcy. They can give you the house 6-12 months after the bk has completely closed. (I THINK this gets you around the bk fraud laws by the skin of your teeth, since your parents could always change their minds and not give you the house. Hire a bk attorney to double check this!!!)
A more ethical route would be for your parents to place the house in a living trust that allows you _and only you (and your guests)_ to live there, and which passes the house to you upon their deaths. Since you don't own the house and the trust won't allow you to rent the house out to anyone else, your creditors can't touch it. However, the bank has about 6 years to sue you for the deficiency in the mortgage, and then has about 10 years to collect the judgment (via garnishment or a lien). If your parents won't be around in 16 years, you will have to declare bk to protect the house.
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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
[This message has been edited by Tracey (edited April 19, 2000).]
