usbank say "no" to deed transfer.

[Koel Gaylord]

I bought a duplex in 2010 in my personal name, however, in 2012 I formed an LLC and last week I called my bank to let them know that I plan to transfer the my personal name from the deed into my company LLC

The bank informed me that they do not allow this because it would not allow the bank to sell the loan to a secondary market (which they have already done) but are still responsible for servicing the loan. Furthermore, since the bank sold the loan to a secondary market but still services the loan, they are required to service said loan in accordance with
investor guidelines which prohibit the transfer of deeds into corporations or LLC. Transfer of deed could activate the due on sale clause and I would have to pay the loan in full.

Anyone else have this problem. I was hoping to add another layer of protection to my personal liability, I guess ill take out and umbrella policy instead:(

[Rob Gillespie]

Koel,
It is easier to beg forgiveness than ask permission.

I would not ask. If they find out, and call the note due, ask them when you should stop making payments. they will say never. So at that point, let em ride. There is nothing they will do.

This is actually caught in the insurance department of a bank. When transferring, add the LLC as additional insured and don't just transfer our of your name all together on the insurance.

If ya wanna be legit, put it in a trust, name yourself as trustee and put the beneficial interest into the LLC. There is NOTHING they can do at that point.

good luck!!