I'm looking for some insight on the "quit claim deed" and the due on sale clause🤔

[Michael L.]

Grand rising BP fam🤜🏻🤛🏽! How likely is a bank to call your loan due on a quit claim deed if your payments are current? Has anyone experienced this, and if so, I'd like you to pm me to break it down for me please. Salute🫡

[Russell Brazil]

Quote from @Michael L.:

Quote from @Russell Brazil:

When you update your insurance to reflect the new owner of the property, that's when the lender is notified and calls the note due.

If you don't update the insurance, they typically will not know. However then you have an uninsured property and an easily piercable LLC since the property is owned by the LLC and mortgage is in your name.

 @Russell Brazil, thanks for the insight. Is there a way to avoid this problem?

Yes. You refinance the property to a commercial loan. You get a new commercial insurance policy with the new owner reflected. And you properly maintain seperate bank accounts of the new LLC.