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Can you avoid property lien with the help of quitclaim deed?

Posted on: 07th Nov, 2007 01:46 pm
I recently became disabled and have lots of medical bills from complications due to heart surgery, my income has gone from over $75,000/yr to about $9000/year. Some of the my bills are in collection, the only thing I have left is my home, if I were to quit claim to my daughter, would that prevent creditors from placing liens on the property because of my bills? There are no pending suits or anything like that at this point. Is there a better way to protect the property?
I think you cannot stop creditors from placing a lien just by quitclaiming property.
Posted on: 08th Nov, 2007 01:35 am
Hi Pam,

Welcome to our forums.

Since you have incurred the debt, your creditor may seek a civil judgment against you or try to garnish your wages. Even if they do not seek a judgment, they have a claim on your assets since you have not been regular on your payments. You may try to transfer the property to a trust or to someone else but the creditor may claim that it is a fraudulent conveyance leaving the transfer aside. In this situation, the term "fraudulent conveyance" does not imply that it's a criminal act. Fraudulent transfer occurs under the following circumstances:

1. You transferred the property thereby intending to stop or prevent collection attempts from your creditors.

2. You transferred property to a third party and for less than it's worth and after doing so, you became insolvent, that is, a state wherein your debts exceed your home.

Good luck
Posted on: 08th Nov, 2007 02:14 am
Hi,

Quitclaim is not a solution here. If you want to quitclaim then you have to clear the lien before signing the quitclaim deed. And if you want to sell the property then you have to pay the lien at the closing. So I think you should better pay it off somehow.

Thanks,
Larry
Posted on: 08th Nov, 2007 02:26 am
my mother has cancer and will not live long and has no burial insurance. she has lots of credit card debt . she owns her home.so can she sign her home over to me so i will be able to sell it to pay her funeral expenses and not have the credit card people come after it. i wont be able to pay for her furneral without it.
Posted on: 18th Aug, 2008 04:40 am
Welcome Jane.

Credit card debts are unsecured debts. So if they have not place a lien yet then the credit company cannot come after you for the due debts after your mother signs the deed to you. So ask your mother to quitclaim the property toy. By the way is it a mortgaged property?
Posted on: 18th Aug, 2008 06:12 am
If mother passes away with the house still in her name, can the creditors come after the house? We need money for funeral expenses. We need to be sure to have the money from the house for that reason.
Thank you for your help, Jane
Posted on: 19th Aug, 2008 05:03 pm
yes, lender is not fool, they don't allow quitclaim on a home whoes owner have had a debt. so ,you cannot prevent your lender to places liens on your home by quit claim.
Posted on: 20th Aug, 2008 03:57 am
I had a voluntary repo on an auto ad the finance company wants to place a lien on my home until the difference of the auto's value and what they sold it for is collected ! Can this actually happen or is it just talk?
Posted on: 18th Feb, 2009 02:48 pm
Hi Pillpusher,

I don't think the lender can place a lien on your property. I'm not aware of any auto mobile contract that gives the lender a right to place lien on your home. No one would put his house as collateral to purchase a car. But, they can sue you for deficiency. However, the laws vary in different states. Thus, it's better to consult an attorney in this regard.

Thanks,

Jerry
Posted on: 19th Feb, 2009 02:45 am
i have 2 liens on the property I live in... my dads name is on the loan, his name is of course on the deed and so is my name and my sons. Can I quit claim my name off? how do I get the judgements to go away? it is credit card debt. Thank you
Posted on: 13th Mar, 2009 11:46 pm
hi denise,

you can quitclaim your share in the proeprty to take your name off the deed. but as your name is not on the loan, you will not be held responsible for not paying it. you need to pay off the debt in order to remove the lien from the property. why don't you go for a refinance (probably a cash-out one) and pay off the credit card debt? that seems to be an option you have with you.
Posted on: 14th Mar, 2009 12:28 am
MY FRIEND HAS BEEN PLACED ON DISABILITY DUE TO MULTIPLE MEDICAL PROBLEMS INCLUDING TERMINAL CA. SHE IS SOON UNABLE TO PAIN HER LOAN SHE TOOK OUT TO PAY OFF HER OTHER DEBTS AND HER 1 CREDIT CARD. CAN THEY TAKE HER INTEREST IN OUR HOME OR PLACE A LIEN WHEN SHE CAN NO LONGER PAY
Posted on: 29th Mar, 2009 09:02 pm
Hi TROUBLED,

I believe they can put a lien on her interest in the home, if she fails to remain current on the property.
Posted on: 30th Mar, 2009 01:07 am
I OWN SEVERAL PROPERTIES ANY OF WHICH IS MORE THAN ENOUGH TO SATISFY THE SUM OF THE JUDGMENT IS IT ALL RIGHT TO TRANSFER ONE OF THESE PROPERTY TO MY WIFE
Posted on: 24th Apr, 2009 01:17 pm
IF I OWN ENOUGH PROPERTY OTHER WISE WOULD IT BE CONSIDERED FAUD
Posted on: 24th Apr, 2009 01:21 pm
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