Legal Question in Real Estate Law in Florida

Judgements & Trust

Due to a foreclosure 5 years ago I have a 18K judgement against me to settle a 2nd mortgage on the foreclosed property. I am trying to get the bank to settle for less and pay the loan off. They want the entire amt. only. Can I set up a trust and buy another house in the name of the trust while I continue to try and work out a settlement or must I pay off this 18K debt first? Taxes are killing me and if I have to pay off the entire 18K it will be 2-3 years before I can save up another down payment.


Asked on 3/30/98, 10:22 pm

1 Answer from Attorneys
Randall Reder Randall O. Reder, P.A.

Buying property

Using other legal entities such as trust or corporationsis a good way of buying investment properties. Itusually is not recommended for personal residences.Whether you can finance the purchase depends on the lender.Most lenders will want personal guarantees or credit checks, so the previous judgment is oftenstill a hindrance.

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Answered on 4/15/98, 7:54 am


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