Can I quit claim an investment home, with a mortgage into an

steve_shiller · Joined: 24 Jun 2008 Posts: 1 1.31 Dollars($)

I want the benefits of the LLC, but the LLC doesn't have any credit. My attorney told me that I can buy the house in my name, finance 80% of the price, and transfer the property to my LLC by using quit claim. Is this legal, or does it violate the mortgage contract?

0.10 Dollars($)

Most mortgages these days have a due on sale clause which means if you transfer the title they could call your note do.
By transfering the title do you establish credit? The loan is still in your name not the name of the LLC?

Brian

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Steve.

Welcome to the forum.

If you quitclaim the property, that will not transfer the mortgage to the LLC. So you need to take permission from the lender before quitclaiming the property to LLC. If you don't take permission from the lender before quitclaiming then the lender may call it due and may claim the total due amount immediately.

Please have a look at "Due-on-sale clause" to know more about it at http://www.mortgagefit.com/due-sale.html

Hope it helps. Feel free to ask if you have any further questions.

Best of luck,
Larry

smaildaytoday · Joined: 15 Oct 2007 Posts: 52 0.14 Dollars($)

You should contact the mortgage company, or else, it may be as a fraud.

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