Is it legal or violating loan terms?

[Amanda Whiteley]

If you seek a mortgage loan for an investment property is it violating loan terms to quick claim the house into your LLC while the loan is still tied to you personally?

[Peter M.]

Does it violate the terms, probably. Is it illegal, no. Most "due on sale" clauses say the lender may accelerate the note or foreclose. Banks generally will not foreclose on a performing note but every institution has its own policies. Also, talk to a lawyer for your state but most of the time a quit claim deed is the last and worst option. Use a general warranty deed so it does not cloud title for future sales.