Another LLC Discussion: Mortgage company won't allow move

[John Blythe]

Hi everyone.

I got a property with hard money, rehabbed, and then refi'd out using Quicken Loans. In the mist of trying to get out as quickly as possible before our hard money payments hit (they gave us 3 mo. period to get the house handled before payments would kick in) no discussion concerning LLC occurred with this lender.

I've now got an LLC established with my wife and I as members and have found out that they won't allow us to move the loan to be under the LLC. Here's what they said:

"If you were to transfer the loan into an LLC, this would go against the terms of the loan agreement, and would call the entire Note due. At this time, the loan cannot be transferred into an LLC."

That being the case, what good is our LLC? Can we still set up a bank account to handle all finances related to the property under the LLC? Our home owners insurance has the LLC and my own name listed on it, will this mortgage issue have any bearing on the insurance now?

Thanks for any insight as to what this messes up in the plan and what is of no consequence.

Best,