Hi, the person is being sued for outstanding credit card debt. Sheriff wasn’t able to serve the notice to show up to court yet so the sentence with possible lien on the house is probably a month or so away. If I buy this house within few weeks with separate financing for the amount that she currently owes on it, can this be reversed by the judge and property transferred back to her and lien put it? Thanks.
You would have to be a party to a fraud for that to happen. You should be OK if you purchase at FMV or close to it.
Buy it for whatever you want. You are not committing any kind of fraud because you are buying a house from her. And it is not your responsibility to make sure that who ever you are buying from is not avoiding being served a judgment. The only way you are taking part in a scam is if you are actively helping her. This passes the smell test in my opinion unless for some reason you are in on some scam which from what you said it doesn’t appear to be so.
People get judgments all the time and you don’t have to wait until you think no one wants to sue them any more until you buy the house. At the time of the judgment the Judge will decide what assets she presently has. If none the judgment will remain on her credit and the creditor will have to use other methods to get their money. Like directly from her weekly paycheck at work.
The plaintive does not want the house…they want cash. You are helping them by converting the asset they don’t want (house) into an asset they do want (cash) they will not stop you from buying that house.