Have you had a loan called after transferring a property to LLC?
Purchased a property in my name with a 30 yr fixed mortgage (big corporate bank). Have sense formed an LLC. Planning to transfer into the LLC. Would love to know if anyone has done this and the bank called to load due to the due on sale clause? I know it CAN happen but would love to know if it does happen.
Pt 2: If it gets called can you transfer property back into your name?
Thanks in advance!
Most Popular Reply
The due on sale clause is a mythical beast like the Yeti and the Lock Ness Monster. They are talked about a lot, but little evidence actually exists for them. If you pay the mortgage on time nothing is likely to happen. Even if they call you on it, call their bluff and ask when you can expect to be served. Institutional lenders have tens of thousands of active foreclosures from people who don't pay. They don't want to mess with someone who is actually paying. If you had $500K in equity, maybe a greedy banker might consider it, but it is unlikely.