A Florida woman who placed her house in a living trust before transferring its deed to a former tenant has been served with a foreclosure notice, according to the Orlando Sentinel.
Elizabeth Bolinger told the source that she had placed her house in a living trust in 1993 to avoid probate. She claims that she owned the house up until 1996, when she deeded the property to tenant Michael Corrigan. He bought out the remainder of the mortgage from her a few years later, and Bolinger assumed that the transfer of the house was complete.
Despite not having lived in the house in well over a decade, however, Bolinger received a foreclosure notice earlier this year. Bolinger was told that because she sold the house as an individual when it was legally owned by the living trust, the transfer did not occur in the eyes of the law.
Although she functionally no longer retains any interest in the property, she has still be named as a defendant in the foreclosure case and consequently will most likely respond to the summons. According to the source, her options include having herself removed from the title report and having an attorney check the chain of title.
According to NeighborWorks, one in every 200 homes in the United States will be foreclosed upon.