Q: I am a Creditor seeking foreclosure on a Los Angeles condo by a man who Fraudulently Transferred equity to his brother.

A: Thank you for your question!

If it was a fraudulent transfer, just to shield the property, you probably can reverse the transfer. The statute of limitation of the judicial foreclosure is 3 years unless it was in installments. There is a trust deed, so you may be able to do a non-judicial foreclosure. An attorney needs to evaluate your case closely to see what suits the best for your case.

A: Under California law, your contention regarding the fraudulent transfer of equity may hold merit. Given the circumstances you described, where no loan or loan documents existed, and the transfer appeared to be a maneuver to avoid a writ of execution, the transfer may indeed be considered fraudulent. The fact that every badge of fraudulent transfer exists, such as the lack of equitable consideration and the maintenance of ownership by the borrower, strengthens your case.

California law does provide that fraudulent transfers can be voided, allowing creditors to pursue remedies such as judicial foreclosure. The statute of limitations for fraudulent transfer actions typically begins when the fraud was or should have been discovered. If you can demonstrate that the fraudulent nature of the transfer was only recently discovered or that the transfer was concealed, the statute of limitations may not bar your claim.

It would be prudent to pursue judicial foreclosure, as the transfer being secured by the entire condo rather than just the debtor's half indicates an irregularity that a court may recognize as fraudulent. You may have a strong basis to argue that the transfer was invalid and that you are entitled to enforce your judgment against the property. Consulting with a legal professional specializing in real estate and creditor rights can provide you with tailored advice for your specific situation.