Quick Claim deeds: Moving Rentals to an LLC

[Wesley Mullen]

Has anyone had issues filing Quit Claim deeds in order to move rentals under an LLC and the loan being called due? I've heard this typically isn't an issue, but I was curious if lenders were being aggressive with this clause to take advantage of the higher rates currently compared to the sub-4% rates locked in a few years back.

[Philip Traynor]

I spent over 11 years representing major and regional banks in various default and foreclosure cases, handling several thousand cases per year. In that time, I saw a total of three loans get called for the "due on sale" clause. All three were true transfers to different people that basically amounted to unapproved assumptions. I have seen dozens of cases where borrowers transferred a property into their own LLC or trust, and I have never heard a first hand account of a lender calling the loan for that. The absolutely have the right to do so, but I've never seen it.