Private lender transfer loan to new LLC
I have an LLC and would like to transfer a hard money loan for a property backed loan to my other LLC to consolidate the loans into one LLC . What type of paperwork is involved in this ? It is presently in Florida where the loan is at. thx you
Most Popular Reply
If you're the owner of the note, then this is a pretty standard assignment. The will be an allonge to transfer the note and an assignment of mortgage to transfer the mortgage. The allonge will not be recorded, but the assignment of mortgage will. You'll also need to have the mortgagee/loss payee clause on the property insurance updated to reflect the new noteholder unless youre using a servicing company that is mortgagee. Reach out to the title company/attorney that wrote the lenders title policy regarding it's transfer. Depending on the circumstances, you may need to create a PSA to detail the transaction between the two entities if you're trying to keep the entities firewalled.
If your the borrower in this scenario, the noteholder/lender will have to approve and do all of this.