Did You Have Your Loan Called Due After Quit-claiming to LLC?

[Matt J.]

Owning properties in my personal name makes me a little nervous, but the financing terms are just so much better with residential financing for single family than commercial. 

Anyone on here, have you actually had your loan called due after quitclaiming your deed or otherwise transferring the title from your personal name to an LLC?

[Todd Rasmussen]

Originally posted by @Caroline Gerardo:

If you do it before sale to GSE its going to get flagged and called. How can you carry fire insurance? If you put the insurance in the LLC the lender will see it in 4- 6 months and flag the file. If you keep insurance to match the title as is you will have trouble with a claim. Can't have both the low rate of conventional with LLC. My suggestion is to set a simple living trust only for this one property, GSE won't get mad as trustee matches owner of record. Also when you change the title to LLC it is a SALE record not a family transfer and fees are due

I carry fire insurance in the name of the LLC, with myself as an individual listed as an additional insured. Six lenders and 20 or so instances of doing so and nary an issue. Have you had an experience where someone did it before sale to GSE and the loan was called?

Most of my loans have started with a regional credit union and only 25% of them or so were sold so my exposure to the instance you are describing is only in regards to the insurance issue. All of my llc transfers have occurred after sale to GSE.