How do I protect my assets in the event of Short Sale or Foreclosure deficiency judgment?

Many lenders are reserving their rights to seek deficiencies in short sales, and it's something you can negotiate with your lender, while getting them to agree to the sale. Be very careful with anything you sign, in that lenders are asking people to waive the non-recourse aspect of their non-recourse loans and to confirm that the lender retains the right to sue if their loan has recourse. As for protecting your assets, there are some vehicles like asset protection/spendthrift trusts, so see a trust/estate lawyer for help. If you transfer assets in violation of the Uniform Fraudulent Transfer Act, any purported transfer would be invalidated. Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.

What you will need to do depends greatly on how much you are going to potentially owe and how valuable are the assets you want to protect. Obviously, a $100,000 deficiency is going to work differently than a $1,000,000 one. If you are onthe high end, you have a lot of creditor beater options including offshore trusts and captive insurance. Brimstone & Co. 1629 K Street NW Suite 300 Washington, DC 20006 ph: +1 202 318 2406 fax: +1 202 318 2406 [email protected]