My husband and parents owned a summer property (3 equal parts). My FIL died in 2003 and my MIL signed over the hole property to her son for $1. At the end of 2007 she filed for bankruptcy. The trusty now says that she had to pay half of the value of the property to her creditors because the transfer was fraudulous. So she is telling us that we have to come up with the money since she has no credit. If not, the trusty will put a lis pendens on the property. I have no intention of selling it so the traditional %26quot;buyer beware%26quot; flags do not bother me. I am concerned that it would affect my credit score. Also, can the trusty actually put a half interest in the property for sale?
Does Lis Pendens have an effect on my credit score? Does it mean the property will be put on the market?
There are many financial and legal questions to answer, which requires expert advice, that are also dependent on individual state laws.
My suggestion is to seek expert legal and financial counsel asap.
Good luck!
Does Lis Pendens have an effect on my credit score? Does it mean the property will be put on the market?
A trusty is a prisoner--you%26#039;re speaking of a trustee.
Lis Pendens means there is litigation pending regarding the real estate. I f you guys want the summer property, you need to start saving up to buy the other share. You said title was in 3 equal parts. How was it held: tenants in common, joint tenants? If tenants in common, did FIL have will? Anytime credit is run on you, that Lis Pendens will probably show up.
When did MIL sign over the property to your husband? Makes a difference whether it can be voided as a fraudulent transaction, a fraud on creditors.
What can happen is that the court will determine whether transfer to your son was a fraud on creditors, and Void that transfer. Then they have several ways of proceeding, and none will be pleasant. The trustee may be amenable to a compromise, so keep that in mind and save up.
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