Howdy folks. 
Here’s a scenario: you purchase your home. You transfer it to a Corporation. It’s the only home in your corporation. Your home forecloses.
Will this hurt your individual credit? Can you be personally liable?
How can you transfer the Note and the Trust Deed to a corp in California?
Thanks in advance.
if the mortgage is to YOU, then the bank reports YOUR credit. If the mortgage is to the company, then the bank reports the company’s credit.
so, if you transferred it without the bank’s knowledge and/or approval, you bet it’ll hurt your credit.
x-ferring the note requires assignment and lender approval to be recognized by the bank (good luck). You can do it yourself if it’s just between you and the company, but the bank will not recognize it.
A deed is just a deed. fill in the blanks and file it at the courthouse.
Thanks McWagner.
To follow up, how would one start a corporation from scratch and then build up the corporate credit and then get the corporation to get a loan?
(I realize I posted some complex questions, but I appreciate anything that you can give me)
you can apply for credit with the corp’s tax id number. I know that Lowes will do this.
do a purchase or refi into the LLC’s name with a personal guarantee. the guarantee doesn’t show up on your credit. Many lenders will do this, but probably not “banks”.
Can you do a purchase via a brand new corp using a personal guarantee? Will this guarantee show up on the credit report?
Once you purchase a property under the corp, do you use the equity to show income for the corp for future purchases without a guarantee?
In other words, what’s the outline process for building up a corp from scratch in order to achieve a state of income & credit so that the CEO or shareholder will not have to personally guarantee anything and all liabilities are with the corp?
in order:
yep
nope
income and history more than equity.
just like any other line of credit. get some. pay on time. show income. have a good history. get some more.
Would you recommend a LLC, corp or S corp for such investing in California?
LLC is the way to go. superior asset protection to a corp and flexible taxation.
Thank you very much for your help.
Do you have a link that compares the LLC with the Corp for R/E investing and a “how to”?
from a tax perspective, an LLC IS a corp, or an S-corp, or a partnership, or a sole proprietorship. you get to choose how to tax it, so there’s nothing to compare.
otherwise, corporate stock is considered an investment. as such it is available to satisfy a judgement creditor. so when you rear-end someone in a pinto, they sue you and win, they get your investments. now they own the corporation that owns the property. you lose.
member interest in an LLC is considered personal property by statute. as such, it is not available to satisfy judgement creditors. they may get a charging order against LLC income, but you can frustrate that. In the end, you still own the company that owns the property. a much better outcome.
LLC all the way.
Wow. Now that is some important information that you just posted.
Thank you for giving me the bottom line to the options.
I have been hooked on the articles and I am sure that I will have some follow up questions for you.
Again, thank you. 
There is no reason one should PG any account. I have have business credit for an LLC and Corp for less than a year. I have 100K or more with both companies and have never given ny SS#. Go to creditboards.com/forums the knowledge is priceless…