If afriend and I are going to buy a house together however he has a large hospital bill, what is the best way to handle this situation?
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If afriend and I are going to buy a house together however he has a large hospital bill, what is the best way to handle this situation?
Is there a way so that the hospital can not attach to my part or any part of the property. He is putting the 20% down and I am financing the loan.
Asked on January 18, 2012 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The problem that you are writing about is serious in that if your friend takes legal title to the house that you two wish to purchase together and the hospital that he owes a large sum of money to obtains a judgment against him, an abstract of judgment can be recorded on the property as a lien creating problems with both of you.
One option is for your friend to create a trust and then take title to the property in the trust's name. It is very important that your friend has no control over the trust (he is not the trustee) in that the judgment creditor most likely will not be able to lien the property if that is the mechanism of how title is to be held.
To be sure concerning the suggestion I offered, I suggest that your friend consult with a Wills and trust attorney further about the question you are writing about.
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