Posted by Rich-CA on April 24, 2007 at 12:53:14:
I notified Citi of the the same thing and they told me to put it back the way it was. I never did and elected not to inform Wells. Regardless, if the Mortgage is in your name, it gets reported against your SSN and does not help with what you’re trying to accomplish. This is different from asset protection.
How do I get properties out of my name? - Posted by Alana
Posted by Alana on April 23, 2007 at 09:30:52:
How can I get my properties out of my name and into the business name to get them off of my personal credit? I have had my business for two years; however my credit score has dropped to 670 from the amount of mortgages I am carrying. No bank will let me get a business line of credit to pull my business expenses off of my personal credit cards.
How do I rectify this situation?
Re: How do I get properties out of my name? - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on April 24, 2007 at 12:47:57:
You need to build a credit profile for your company.
Staples. Easy to qualify for credit with them.
CD Loan. Open up a CD (banks usually require at least 1K) in your business name. Then request a line of credit secured against the CD. Make sure that they report the tradeline and you will be on your way to building business credit.
Re: How do I get properties out of my name? - Posted by Rich-CA
Posted by Rich-CA on April 23, 2007 at 23:06:35:
You’re talking two different things. One is getting the property out of your name (easy to do - use a Quit Claim Deed). The other will require refinancing in the company’s name (very difficult to do - and if they allow it, expect to pay through the nose for it) in order to get the reporting SSN changed.
For credit cards, I have found that MBNA (now Bank of America) and Wells Fargo will both issue credit cards to brand new companies. They do not report these against your personal SSN, though you will have to “co-sign” for them.
For a business line of credit, you are right, they do not seem to want to talk to businesses that are less than 2 years old.
Re: How do I get properties out of my name? - Posted by Alana
Posted by Alana on April 24, 2007 at 12:50:39:
Thanks! I like your ideas. I will do them today!
Re: How do I get properties out of my name? - Posted by Alana
Posted by Alana on April 24, 2007 at 07:59:16:
Thanks for your response.
Bank of America will not let me Quit Claim one of my deeds into the business name.
For the business line of credit, I have been in business for two years; however, every company I have spoken to who offers a line of credit wants to run a personal credit check.
Also, I have found that Bank of America and Wells Fargo expect you to have a very high credit score in order to obtain a credit card. MY DTI is very high, therefore, my credit score is in the fair range.
Re: How do I get properties out of my name? - Posted by Rich-CA
Posted by Rich-CA on April 24, 2007 at 11:26:57:
You can’t ask a lender to do a quit claim, none of them will allow it. It violates the clause commonly called “due on sale”, which essentially says if the name on the title changes, the lender MAY call the loan due in full. In practice, none of them do it unless you get behind in payments. A quit claim will not, however, get the mortgage off your credit report. The only way I have found that any will agree to is to create a living trust and quitclaim the property to that. Federal law requires they allow it. However neither of these will achieve your goal.
The only way to get a mortgage off your credit report is to refi in a company’s name and most will not do this.
Line of credit are very difficult to qualify for. All banks will want a personal guarantee of any money they lend your business and they will want to pull your credit report to see if you’re good for it. You cannot avoid this. They may not report the credit against your SSN, and so it won’t appear on your credit report, but that all changes if you are late in making payments.
Re: How do I get properties out of my name? - Posted by Alana
Posted by Alana on April 24, 2007 at 11:43:59:
My assest protection person told me to obtain signed letters from the lenders notifying them of the change in order to NOT trigger the due on sale clause. Bank of America was the only lender that had an issue. Everyone else was fine with it as long as I was still responsible for the loans.