Loan Due on Sale clause when changing name on Deed

[Gary Fraser-Lee]

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.

[Russell Brazil]

What's the point of moving it out of your name? If the property is owned by the LLC, and the mortgage and insurance is in your name....that LLC is easily piercable...so you are not actually limiting yilour liability.