LLC or Insurance...A Forever Question

[Blake Cross]

Good afternoon folks!

To get this going again, I'm wondering if anyone knows if only Fannie and Freddie are allowing investors to transfer title into LLCs that the lien holder's control, or if it is across the board now? We have 4 properties but only one of the loans are owned by Fannie and Freddie. One is owned by JP Morgan and serviced by Specialized Loan Servicing, one is owned by Morgan Stanley and Serviced by Shellpoint, one is owned and serviced by Lakeview. They're all kind of sketchy-seeming debt collectors and will not provide me with written permission to transfer title into the name of an LLC. Fannie, Freddie, and PennyMac have all been happy to provide me with this in the past but these few institutions will not. Some customer service reps have verbally told me that "it shouldn't be a problem" but that obviously won't help me if one of them decides to accelerate my loan at any point in the future.

I've seen threads on BP where people talk about having their loan's due-on-sale clauses invoked so I know it does happen. When Fannie and Freddie announced they were going to allow it, I was pretty excited but neither of them will buy our loans haha. Does anybody know of any federal policy that allows this or if it is just up to the individual company policy of whoever decides to purchase the loan?

We are about to dissolve our 3 LLCs and form a Series LLC to put each house into individual Sub-series to maintain asset liability separation, have one consolidated tax return for the rentals, and only have to deal with one annual LLC fee...but we're wondering more and more if an increase in umbrella insurance is all we would need. I do worry about Insurance companies trying to look for how they're not liable for something and leaving us to pick up the pieces so we're just looking for some advice as there are no clear answers to these concerns.