Name on Mortgage but Deed in LLC for liability Protection

[Raymond Kalonji]

Hello,

I'm moving out of my primary residence on which I have a residential mortgage in my name to another house that will become my new primary. I plan to rent my current house, so I asked the bank if I can put it in an LLC without having to refinance. They said that I can put the deed in an LLC but the mortgage will have to stay in my name otherwise it will become due. If I do that, meaning deed in LLC but mortgage in my name, and God forbid renters sue, can they come after me and my other assets since the mortgage is in my name? With this setup, will I get any tax benefit?

[Russell Brazil]

The LLC will be easily pierced. If you want it to actually provide liability protection, youll need a seperate bank account, refinance the mortgage to a commercial loan, and get new commercial insurance with the new owner of the property, the LLC.