If I have 2 investment properties currently in foreclosure and a revokable trust on another vacation home,c ould a deficiency judgment affect the trust property?
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If I have 2 investment properties currently in foreclosure and a revokable trust on another vacation home,c ould a deficiency judgment affect the trust property?
6
Asked on August 3, 2012 under Estate Planning, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, if the loans on the properties that you are writing about are not purchase money loans, then if the properties go into foreclosure, you very well could be subject to a deficiency judgment. If so, then your personal assets would be subject to it. However, under the laws of all states in this country, the trust's assets per se cannot be levied upon. However, if you personally get trust assets, they would be subject to levy in such a situation.
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country, if the loans on the properties that you are writing about are not purchase money loans, then if the properties go into foreclosure, you very well could be subject to a deficiency judgment. If so, then your personal assets would be subject to it. However, under the laws of all states in this country, the trust's assets per se cannot be levied upon. However, if you personally get trust assets, they would be subject to levy in such a situation.
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