Due on Sale Clause
Hi,
I am gearing up to transfer my rental properties into a single member LLC. These properties have mortgages in my name. I am aware that the lender could call the mortgage due but it seems to be extremely low risk. I am also aware that using land trusts can get around this but I am not convinced it is worth the hassle since the privacy benefits offered by a land trust are mostly lost in this particular situation. I have searched a lot on this website and others and a lot of the discussions get into arguments about whether the lender can do this, and if they do will a court allow it, etc. I am not interested in that. Instead, I am hoping for comments from people that have transferred real estate with personal mortgages into an LLC. And from those experiences, was the mortgage called due or not? How many properties have you done this with and how much time has elapsed? Thanks,
Brandon