Mortgage company wants to initiate Due on Sale clause

[Kim Martin]

Closed on 2nd rental property in July. I have successfully setup LLC and am trying to transfer property into LLC. When I initially spoke with customer service rep at RoundPoint Mortgage(my original mortgage was sold to them) I was told they do not execute Due On Sale. My attorney was told I needed to send letter to Mortgage company stating what I wanted to do and they would pass letter on to lender for approval. I received notification today that if I transfer to LLC Due on Sale will be initiated so now I'm not sure what options I have? Find lender who will let refinance under LLC? Look for possible HELOC to secure remaining funds to payoff loan and then transfer to LLC?

Any advice would be greatly appreciated.

Kim

[Clifford Paul]

Originally posted by @Tim Johnson:

why do you want it in an llc?  Do some searchs on here, tons of people have rentals in personal name.  If someone is going to sue you they are going to sue you personally, llc, and everyone involved.

 What Tim said! 

I have been doing this real estate thing for 36 years without an LLC. I don't get why new investor on BP think they need one. I guess it's like everytime a new IPHONE comes out because everyone else is getting one I have to have one to. The reality is if or when you get sued you will be named along with any partners in your LLC. Get a umbrella policy that covers your rentals and sleep good at night.