Mortgages transfered to Business entity stay on your personal credit report

[Anonymous]

Good day forum members,

Please forgive me if this has been answered either here or elsewhere. I have a dilemma I'm trying to solve.

I opened up a Residential Real Estate Investment business in 2007, but had no credit history with the new entity so I purchased my first investment property in my own name. For many reasons including legal reasons, I was advised by peers to transfer the property out of my name and into the entity to disconnect the business affairs including credit history from my personal assets should the business go belly up. In joining this service, I see the investment mortgage is still actively recorded in my Equifax report. How do I remove it and keep it off my credit report? Is this even possible to do??

JBD1000

[GregB]

I think you will find that there is no way to transfer a mortgage to another entity. The new entity would have to get a mortgage that pays off the first. The new entity will almost certainly not qualify for a mortgage, particularly today.

Put yourself in the lenders position. Why would they let you off the mortgage personally? Do you remember what they required just to put you on it?

The people that I know that do Real Estate Investment do one of the following:

- Have loans in their name. One has 7, one has 9.

- Pay for the properties without borrowing

- Have really good credit and good relationship with the bank. The one that I know that did this had average bank balance 5-10 times price of the property he/we were buying.

P.S. None of them are buying in this market. Houses still have a way to drop in value.

[Jazzzy]

Our residential investment mortgages are always in our names personally. Even if I set up another legal entity (in my case it was a partnership), we remain personally liable for the mortgages. They report on our personal credit reports.