Battle Ground, WA · Member since 2015 · 67 posts · 14 votes
I own 2 duplexes in Indianapolis, which are mortgaged in my name. I want to move them into an LLC, but other than the possibility of the bank calling the note when I do it (which everyone I've talked to says never really happens), what are some things to think about? Does it cause any problems when I go to sell the properties, or anything like that?
I think moving into an LLC is the right move, but I want to make sure I've got everything taken care of on the front end before I do it.
Los Angeles, CA · Member since 2019 · 148 posts · 127 votes
6y
@Phil T. I am no expert so best you check with your bank but, in my experience, as long as your mortgage is solely in your name and your LLC is a single member LLC owned and managed by you, you shouldn't have a problem. I've quit claimed properties back and forth without a problem. You could go the safe route and ask for permission from your lender. I believe there is a law or regulation in place that explicitly permits this. Might be more complicated if you have a partner on either the mortgage or entity, though.
Battle Ground, WA · Member since 2015 · 67 posts · 14 votes
6y
@Ric Ernst The properties are owned by just me, and I'll be the only one in the LLC. I've tried speaking with 3 people at the bank, just asking them "what if" questions, and all they'll tell me is that the bank can call the note, but won't say one way or the other if that'll happen. I get it, they don't want to be on the hook if something goes differently than they said it would.
With all the people I've talked to that have said that it's possible, but they've never heard of it happening, I'm not too worried about it. I guess if for some reason it does happen, I'll just have to refi.