Too much equity being a lure for a lawsuit

[Kenneth LaVoie]

I often hear that it's important to keep your properties heavily mortgaged to keep the equity down, so that you don't look "juicy" for  a lawsuit. (assuming there's a reason for being sued in the first place) I cannot imagine that being true. It strikes me as a very fear-based way of strategizing. Can anyone comment on that?

[Damon Pendleton]

Attorneys who represent inured people look for Insurance not equity in real property. Even if an attorney got a judgment in that situation, they would have to turn that judgment into a judicial sale of the property in order to collect, which would be a nightmare. Also, if there's a mortgage at all, an attorney wouldn't be privy at the outset on whether the property owner were leveraged 90% or 10% LTV.

The only time I see this remotely being an point of concern is if there were horrific injuries and the owner had grossly inadequate Insurance (which should never be the case).