Q - Can more than one property be linked to a single mortgage? We have a client who has two properties on the same mortgage and I need to link them both to that mortgage.
A - Unfortunately, what you are trying to model is a level of complexity the software does not delve into. When a property is linked to a debt, the software assumes that any balance due on that debt (mortgage) is paid off from proceeds if the linked property is sold.
Linking two properties to a single debt would present a problem with this assumption. What if one property were sold but the other wasn't? Should the debt be paid off from the liquidation of the first linked property or the second? We therefore limit the number of properties linked to a debt to one; however, you could have more than one debt linked to a single property, as is often the case with second mortgages.
There are two options you might consider.
1. You could leave the debt unlinked to either property. Bear in mind that by leaving the debt unlinked, the software will not assume automatically that the debt is paid off when these properties are sold. In that case you would need to set on the Mortgage screen, under One Time Payments > Add One Time Payment > Payoff, a payoff event that references same event that is being used to schedule the sale of the properties.
2. Alternatively, you could enter the debt as two separate mortgages, linked to their respective properties. The downside to this is that your client would see two separate payments on the respective portions of the debts whereas in reality they probably make a single payment but I think this would be very easy to explain.
Can a single debt be linked to multiple properties?
Christopher Perry