Atlanta, GA · Member since 2017 · 35 posts · 3 votes
Father passed and left me properties- two of which were bought as a second home. I'll be renting/managing these as vacation rentals. As I now need to move these out of his name I'd like to put them in an LLC, but my concern is it'll trigger mortgage to reassess the mortgage from a second home to an investment property. I know the mortgage co. can't call in the loan (due on sale) b/c of Garn St. Germain Act, but can they change any of the mortgage if I try to protect myself and put in an LLC?? Thanks, Scott
Lender · Playa del Carmen, México · Member since 2014 · 2k+ posts · 1k+ votes
6y
Hi @Scott R. I'm no attorney, but I would imagine if the lender can't call the loan (under Garn–St. Germain), they probably can't unilaterally modify it either.
That said, if this were my property, I'd place it in a land trust (also protected by GSG), then make the trustee someone reliable that doesn't share my last name, and finally make the beneficiary the LLC. That way I get some anonymity, asset protection, and limited liability. Plus, if/when I ever need to change out the beneficiary, I don't have to re-deed the property; I just amend the trust document. The lender would be totally unaware.