Legal Question in Credit and Debt Law in California

Re: grant deeding

I am sorry if in my response I made it sound as if you had fraudulently transferred the property. That was not my intention. My point was that irrespective of your motive, the creditor may view it as being fraudulent because of the timing of the sale, and may go so far as to get their own appraisal and see that it was for something less than FMV. As such, they may view it as fraudulent, and pursue that remedy. Your defense will obviously be the facts you discuss in this follow-up question, as well as fact that to sell a property quickly in this market, you have to be well-below market. Problem you do face is that the creditor is going to say that you effectively made preferential payments to other creditors by what you did (you took the equity out of the house, and paid other creditors instead of him. This will only be an issue if they raise it, at which time you will have to defend it. Absent a settlement with this creditor, there is not much you can do now about the sale of the home, except get your ducks in a row to prove that there was a valid reason for the sale at that time, and at that price.

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