Asset Protection

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Knowledgeable attorneys and CPAs who specialize in asset protection understand the law and are able to apply it to the benefit of their clients.  Reputable asset-protection advisors do nothing against the law.  As a comparison, any good tax attorney or CPA understands tax law, and knows how to work within its confines to structure investments and business transactions to legally save taxes for their clients.  Similarly, asset protection specialists know how to structure legal entities and business transactions that legally benefit their clients in a variety of situations.  Today’s depressed and over-leveraged real estate market is a prime example of one desperate situation where experience and professional expertise is crucial.

Our typical client is an individual who possesses significant assets and who owes more on a property than the property is currently worth.  Our firm truly understands how to properly negotiate or structure the sale of a property for these individuals.  Properly negotiate means that the lender:

  1. Accepts less than the full amount owed;
  2. Cancels the mortgage obligation as “debt satisfied; and
  3. Agrees in writing not to pursue legal action against the borrower’s remaining assets

When properly negotiated and structured, such an agreement is a win-win situation for all parties:

  1. It protects the remaining assets of the borrower with likely less of a negative impact on the borrower’s credit score than suffering a foreclosure or subsequent deficiency judgment;
  2. It preserves the remaining assets for the borrower’s family;
  3. It provides the lender with an amount that represents the true current market value of the property; and
  4. It delivers funds in a timely manner to the lender at considerably less expense than might otherwise be possible.

The borrower with assets makes a strategic business decision to transfer ownership of the property for its current value, which may be significantly less than the amount borrowed against the property. Once made aware that the borrower’s remaining assets are not available for seizure, the lender quickly recognizes the advantage of agreeing to a short sale of the subject property for its actual value. This avoids the lender holding the property in inventory for some future appreciation that may or may not occur.