Legal Question in Real Estate Law in New Jersey

Under the circumstances, it is not a good idea for your family to put property in your name. Depending on the terms of the short sale, you may still have liability that can result in debt that would encumber the Florida property. You may eventually have to declare bankruptcy and may lose equity in the Floriday property as a result. It would make better sense for your family to hold title to the Florida property and to rent it to you for whatever sum seems appropriate.

See also: http://info.corbettlaw.net/lawguru.htm

To supplement the answer of the first responder, the greater risk is the 2nd mortgage. It is unlikely that you would ever be pursued for a deficiency on the first mortgage (for various legal and practical reasons which I will not get into here). The lender on the 2nd mortgage can sue you on the debt and can obtain a judgment if they are successful (or if you don't respond to the suit). Whether they obtain a judgment in NJ or in Florida, it can be enforced in Florida. You would really need to consult with a Florida attorney to discuss what kinds of collection efforts a judgment holder may proceed with in Florida, and what type of exposure you would have for real estate owned by you. Collection law varies from state to state. If the short sale results in the 2nd lender agreeing to FORGIVE the debt, then certainly that would be good for you. But be careful, an agreement to accept less in order to clear the lien and let the NJ property be sold is not the same as an agreement to forgive the debt. You did not say how much the 2nd mortgage is. Your analysis will depend on this, and how much exposure you have. Until the situation is analyzed, you do run a risk if you have other real estate "in your name." And also, as the other poster said, if you ever need to file bankrutpcy due to liability for the 2nd mortgage, your ability to do so without losing the FL property would be jeopardized.

Note: Due to the limitations of the LawGuru Forums, the response to questions posted does not constitute legal advice or legal representation of the person posting a question. The information provided is general. The poster should obtain specific legal advice from an attorney, and should not rely upon the response as the basis for making any decisions of legal consequence.

I would not put any asset in your name until you have been completely released from the current mortgage.