How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Barrister Your Own Question

Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 24627
Experience:  14 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 24+ yrs
19958803
Type Your Legal Question Here...
Barrister is online now
A new question is answered every 9 seconds

I am an Alabama home owner. I do not have a mortgage on my

Customer Question

I am an Alabama home owner. I do not have a mortgage on my home which is valued at approximately 100-110k. In 2002 I purchased a building in another county with an ex business partner and in 2003-2004 I was asked to sign a quitclaim deed on that property due to my financial situation. Well it is now 2013 as you know and I just learn this past Saturday via the post office that I was being sued by a bank for the property that I wasn't even aware that I still owned. My ex partner was to refinance the following year based on the loan type that we had together. In 2009 the building was still not refinanced and he stopped paying. I am wondering if living in Alabama if I could lose my home? I know this state offers a $5000 exemption, but if and when I'm sure a judgment is awarded can they force a sale or just lien my deed for 10-20 years? Is that $5000 protection enough for me to at least retain my home? I was in the process of trying to finance my home to remodel my kitchen as well as add a garage can I still refinance my home before we go to court in August 2013?
Submitted: 1 year ago.
Category: Legal
Expert:  Barrister replied 1 year ago.
Hello and thank you for using JA! My goal is to provide you with excellent service and help with your legal problem.
.
I am afraid that I don't have good news for you so please don't shoot the messenger. If you were a co-signer on the debt for the other property and the lender forecloses and sells it, if it doesn't sell for enough to pay the debt, they can come after you personally for any deficiency.
.
As you are aware, there is only a $5,000 homestead exemption in AL for equity in a person's home. This means that if they get a judgment against you, only $5K of the equity in your home is protected from creditors. They can file a judgment lien on the house and then foreclose and force a sale of it to enforce their judgment.
.
With regard to taking a loan out on the property, that would be a good idea because it would increase the debt on the property and reduce the available amount of equity for a creditor to come after. The problem would be in getting a bank to loan you money if you are being sued. They will typically have required disclosures where you would have to notify them if you are subject to any pending legal action.
.
I am sorry the news wasn't better.
.

.

.

Thanks.

Barrister

.

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

Customer: replied 1 year ago.

Thank you for the response... I expected that answer, but have a slight variation of the question. I currently own a printing company and have decided to buy out a partner for $75k (paperwork was drawn a few weeks ago before I was aware of a pending suit and drawn up by partners attorney). I owned 51% and I bought out a 24% partner. To do this I borrowed the money from the remaining 25% partner, can he just put a lien on my home since I owe him so much? Actually he is the way that the home was originally purchased, I didn't go through a bank I had originally borrowed from him.

Expert:  Barrister replied 1 year ago.
Yes, that would actually be a very good idea because if there are other liens on the property, then they would take priority over any potential judgment that could be issued against you. The more equity you can eat up, the less there would be for any judgment creditor to come after. Ideally, you would borrow up to $5K or $10K less than the house was worth so it wouldn't be appealing for any judgment creditor to come after since the first lienholder would get paid first out of any proceeds of a sale of the house.
.

.

.

Thanks.

Barrister

.

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

Customer: replied 1 year ago.

Well if my home is 75K tied and 5K exemption then they could in essence get a judgment for 10-30k is that enough to force a sale or should I be protected from a sale? I am not afraid of the judgment since ill never sale the home so I can wait them out ; ) I just want to make sure that I will not become homeless. You have been great I am sure this is the final question that I will be needing help with. Thank you!

Expert:  Barrister replied 1 year ago.
Well, if they forced a sale at auction, the house wouldn't bring what it is appraised at. Typically foreclosure sales bring around 65-75% of the appraised value of the house. So considering that they would have to spend $5-10K on an attorney to foreclose and sell it, if the house is appraised at around $100-110K, having $80K worth of debt and exemptions against it should effectively protect it since there likely wouldn't be anything left to pay the judgment creditor after any sale.
.
.
Thanks
Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 24627
Experience: 14 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 24+ yrs
Barrister and 3 other Legal Specialists are ready to help you
Expert:  Barrister replied 1 year ago.

Thanks so much for the positive rating and generous bonus, it is very much appreciated!

.

It was my pleasure to work with you and help with your question. Please feel free to ask for me if you need help with anything in the future and I will do my level best to help or get you to someone who can.

.

Barrister

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Not only did he answer my Michigan divorce question but was also able to help me out with it, too. I have since won my legal case on this matter and thank you so much for it. Lee Michigan
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8436
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    19941
    Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    8189
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/jespoag/2008-12-17_222355_jessepic.jpg JPEsq's Avatar

    JPEsq

    Attorney

    Satisfied Customers:

    2132
    Experience as general attorney, in house counsel, SSDI, Family Law attorney, and law professor
  • http://ww2.justanswer.com/uploads/gsenmartin/2008-04-22_214950_me1.jpg Guillermo J. Senmartin, Esq.'s Avatar

    Guillermo J. Senmartin, Esq.

    Attorney

    Satisfied Customers:

    110
    7+ years of experience handling various legal matters.
  • http://ww2.justanswer.com/uploads/PA/PaulmoJD/2013-10-10_195858_JAImage.64x64.jpg Law Educator, Esq.'s Avatar

    Law Educator, Esq.

    Attorney

    Satisfied Customers:

    31621
    JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    15975
    Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
 
 
 
Chat Now With A Lawyer
Barrister
Barrister
Attorney/Landlord/Realtor
6894 Satisfied Customers
14 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 24+ yrs