Mortgages on F/C houses for asset protection.

[Randy King]

What are the pros and cons of recording a mortgage on a free and clear property for asset protection.

[Bill Gulley]

That's fine, you didn't say, there are those who advocate doing what I mentioned.

That is going to cost you something, financing charges for any LOC. It's not worth the effort or money in my opinion. Any attorney who passed a bar exam will know that the lien amount filed is not the balance owing. Some security agreements recite the type of line as being for a LOC, so in reality it's not a deterrent to filing any suit against you. If you own RE chances are you have insurance, that in itself provides the deep pockets to go after you if you messed up. :)