Legal Question in Real Estate Law in Arizona

Re: Fraud?

Generally, this is not legal.

However, if the property is being foreclosed on by the party in first position, the lien in second will likely be extinguished anyway.

If there is a significant amount of money involved, you may want to consider hiring an attorney (on a contingent fee perhaps).

Re: Fraud?

Generally, this is not legal.

However, if the property is being foreclosed on by the party in first position, the lien in second will likely be extinguished anyway.

If there is a significant amount of money involved, you may want to consider hiring an attorney (on a contingent fee perhaps).

Re: Fraud?

A transfer made in order to keep creditors from getting your assets, is usually a fraudulent conveyance and can be undone by the court. If the property is worth less than what is owed to the 1st mortgage lender, then the collateral you son had by having the second lien on the property is worthless, no matter who owns the property.

Just because the property was transferred to another person, does not defeat the second mortgage, and the debtor still owes the money to your son. So your son should take aggressive action to try to collect what is owed to him, and not be thinking that because the property is gone that the debt has been extinguished.