Do you offer a Friendly Lien?

• We offer a product called Equity Stripping. This product is synonymous with a  friendly lien. This would require creating a company to act as the Mortgagee in order to create a mortgage or a promissory note. This makes a property less attractive to a party seeking to start a lawsuit, as the lien amount cannot be taken as part of a judgment normally. This means that only the equity in the property will appear to be available in a lawsuit. There are some negatives to this approach, however.  A client will generally be required to pay a mortgage tax and actually make payments to the mortgage company that has been created.
• Usually, the property is transferred into a land trust/child series first, and the land trust becomes the Borrower. The Lender will be the client's Lending entity, generally a Traditional LLC. So, there would be $550 for the property transfer, and $1500 for the traditional plus $135/year RA, and of course recording fees are not included. We usually do not record mortgages as part of our process, but we provide the client with instructions to do so. There can be mortgage tax due at time of recording, which can get expensive.