AM I liable for my S-corp.

[kingster555]

IF I buy a house in arizona with my name on the mortgage, but have the title in my S-corp., am I liable because my name is still on the loan?

[David Whisnant]

Hello,

Dan asked it I could give you my .02 worth on this one!

I have to give my disclaimer that I am not giving legal advice, or forming an atty-client relationship.

I assume on this transaction that you closed on it in your name and then did a quit-claim to your corporation.

You would be liable personally and have your credit impacted if you defaulted on the loan since you are on the mortgage.

Transferring to your S corp may also be contrary to your due on sale clause as your corporation is a separate entity from yourself. (That is less of an issue, however, as you can always deed it back to yourself from your corp if your lender ever became alarmed.)

Other details:

You should also contact your insurance agent and make sure that your transfer to the S corp does not violate any provisions of your hazard insurance, and that you are still covered.

You should also check with your closing attorney to make sure that any title insurance you bought in your personal name before moving it to your S corp is still valid after the transfer.

I hope this helps!

Sincerely,

Dave Whisnant, JD

(I invite you to check out my full real estate course and free package of valuable real estate investing information at:http://www.4-real-estate-investing.com)