Quitclaim to LLC concern

[Joshua Hill]

I have recently had an attorney set up a quitclaim to change the title on my rental property from my personal name to the new LLC. I have two mortgages on this property that were originated in my name. I have asked the attorney about the mortgages being called in and he said they likely would not do that however they certainly could. I just cant get comfortable with that answer. So I wanted to ask the forum of any experiences with this and what was the outcome? Any info greatly appreciated

[Will Barnard]

Joshua,
I have got loans in persoanl name and transfered title to entities many times over. I have never had a lender call on the due on slaes clause. They key here, which the banks realize, is that the entity owner is the same as the person on title (YOU) and therefore there is really no problem. I have yet in all my years, here of any investor having a lender actaully go through with a DOSC after a title transfer to an entity.

What you MUST do is make sure that your insurance is changed. When you purchased the property in YOUR personal name, you (persoanlly) were listed along with the lien holder as the insured, and now that the entity is the owner, the policy beneficiary needs to be your entity and not you, otherwise, the insurance carrier could deny a claim as YOU personally do not own the property anymore.