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

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Icon Mini Profile steve_shiller





Joined: 24 Jun 2008

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Post Posted: Tue Jun 24, 2008 3:32 pm    Post subject: Can I quit claim an investment home, with a mortgage into an
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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?
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Post Posted: Tue Jun 24, 2008 4:15 pm    Post subject:
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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?

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Icon Mini Profile larry





Joined: 27 Jun 2007

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Post Posted: Wed Jun 25, 2008 4:21 am    Post subject:
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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
Icon Mini Profile smaildaytoday





Joined: 15 Oct 2007

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Post Posted: Sun Jun 29, 2008 10:32 am    Post subject:
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You should contact the mortgage company, or else, it may be as a fraud.
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