Deal Hunter I posted about a somewhat similar method with a recently sold home in Carmel Valley. This home recently went REO as the lender finally put a stop to it. So basically the homeowner would setup corporations in Los Angeles. He would then transfer a partial interest in the home to the corporation. Then he would try to shield the home from foreclosure because the corporation would declare bankruptcy. This served a purpose in forcing the lender to get a deficiency judgement in the county where the corporation was. Once the judgement was passed, the seller would then setup another corp and do the exact same thing. Again an attorney would be the officer of record.
For the Carmel Valley home I am talking about they were able to delay foreclosure by about 9 months. By the 4th time, the lender was able to show the county judge that the home could not be protected under bankruptcy protection.
