HELP!! ABSTRACT JUDGEMENT!!

General Real Estate Investing
1

I have acquired a property from my cousin, which I have just sold (currently in escrow). Title has just notified me that I have an abstract judgement against me in the state of California for the amount of $187,000–which by the way, I had no idea existed, this is the first I have heard of it. The situation involves a previous transaction conducted by my brother where he purchased a property from some person and then signed it over to me, but I never knew anything about his previous dealings with the prior owner; this deal took place over thirteen years ago and I have no idea why I was included in the civil case filed–the twist is, the beneficiary of this judgement died over eleven years ago.

So question is this: do I sign the property over to my wife (who I have married after the judgement), or do I transfer the property under my LLC? If I don’t transfer the property somewhere, I will have to pay this debt.

Please help… ???

2

Howdy Rick22:

Once the property is in your name you are stuck with the judgment. Transfer will not help. Most judgments disappear after 7 years unless renewed by the holders. You may check on this with the title company. You are going to have to get the judgment released to get it sold. You may be able to settle with the heirs of the beneficiary for pennies on the dollar and get it released if it is still a valid lien.

Why did you not get notice of the civil lawsuit?

3

Tedjr,

You are right , I am stuck!!! After consulting with a real estate attorney, today I will be visting his office to negotiate a compromise with the creditors attorneys. California judgements last 10 years. The $187,000 judgement with 10% interest is up to $431,000, I will keep you up to date after today, Thank you for your response.