Deed in Company Name; Mortgage is Personal

[anu31402]

I have a new client who bought a residential property and paid mortgage in early January of last year in his name. 3 months later he said he sold the company to an s-corp he incorporated and so changed the Deed to the company. But the Mortgage is still in his name.

Please, any direction on how best to treat this? Any citation or publications?

[ChEAr$]

please explain

I have a new client who bought a residential property and paid mortgage in early January of last year in his name. 3 months later he said he sold the company to an s-corp he incorporated and so changed the Deed to the company. But the Mortgage is still in his name.

Please, any direction on how best to treat this? Any citation or publications?

You speak of "residential property". Is this rental property? Surely you can't mean his
personal residence; or.....?

[anu31402]

Yes. They are rental property. He said he couldn't get banks to finance the 3 buildings he now has as rental properties (...He bought 1 in 2006, and 2 more in 2007). All 3 are different from is principal resident.

I told him he would have to sell the properties to his company. I refer him to meet with his lawyer on the best route. However, I would like to learn how he could do this within the law.

Thanks for kind advice.