Legal Question in Real Estate Law in Missouri
Do I have to sell or can I deed?
I have a home with 2 mortgages against it. I may be facing a possible judgement against it. About $8600.00 Is there any way possible to transfer the house into my daughters name without going through the process of it looking like I have sold it to her before this judgement takes place? I would continue to make the payments but it would be in her name so that in the future if it were sold the judgement could not be put against it. The judgement involves a default of payment in a lease in which the equipment that was leased was done so under false pretense therefore not being of any use to our company. The leasing company refused to break the lease and I am the one that signed a personal agreement when it was leased because I was the only one with worthy credit. They have now turned it over to collections and I suspect the next step will be to seek judgement. Also, is judgement normally the first step to recoup what is owed or can they garnish or seize bank accounts also? I am a single person and would like to know if I need to take further action before this goes to court. I don't want to end up with this taken from my property if I were to sell it in the future or seized from my bank acct. or wages. Thank you in advance.....
1 Answer from Attorneys
Re: Do I have to sell or can I deed?
It appears you have a complex situation here, that may need solutions for different problems. First, the issue of the default on the lease that is possibly leading to a judgment and lien against your property must be dealt with. You should consult an attorney immediately reagarding the lease to determine if there is a way to resolve this without a judgment. If the the equipment is not what you expected or needed, and the vendor new it, then you may have some recourse to thier demand for payment. If the equipment was used to secure the lease, then they might have to take the equipment back, and only be able to sue you for the difference.
Second, transferring your home to someone to avoid this possible judgment is very harsh step. If you deed it away, despite the good intentions of the reciient, you effectively lose control of the property. A judgment against the property is troublesome, but it does not necessarily give the judgment holder any assurance of being paid.
My advice would be to contact an attorney who practice in the areas of business and real estate and give them the full details of your situation. Do this before the collections action goes any further, as you may be able to avoid the judgment problem entirely. Good Luck.
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