Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago,

User Stats

21
Posts
9
Votes
Gary Fraser-Lee
  • Investor
  • Grand Rapids, MI
9
Votes |
21
Posts

Loan Due on Sale clause when changing name on Deed

Gary Fraser-Lee
  • Investor
  • Grand Rapids, MI
Posted

I have a rental property that I want to move into a newly created LLC in order to get it out of my name directly.

Since I have a mortgage on the house, I reached out to the Mortgage company and they say that I can not change the name on the deed from myself to the LLC. (Quit claim deed to the LLC?). This will trigger a due on sale clause that is apparently in my contract.

The mortgage company says that since the loan was originated previous to June 2016, by Fannie Mae rules they can not approve the change of name on the deed.   They say it will get reported to them, if I were to change the deed at the county, as they have a lien on the property.  

Does anyone know if I can get around this issue with the mortgage company?

Thanks.

Loading replies...