What happens to mortgage after transferring to LLC?

[Anthony Barbato]

If I get a mortgage on a property in my personal name, and then transfer that property into my LLC's name, what exactly happens to the mortgage? Does the mortgage also go into the LLC's name to be paid from the LLC? Or is the actual deed the only thing that the LLC would receive?

[Michael Seeker]

You can transfer the deed to your LLC, but the mortgage will remain in your name. There are a lot of topics that cover this situation on BP, so you can search around for more info on the logistics. The biggest thing to be aware of is that the bank can call the note due if you do this. They usually do not do so and it's not a big concern in the short term. When interest rates go up they may be more active about forcing folks to refinance/repay the notes though.