Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
My father formed an LLC and wanted to transfer his existing property to the name of the new LLC. Can you transfer the deed even if the home is not free and clear? Is this something he can do? Or does an attorney have to be present?
Investor · west seneca, NY · Member since 2014 · 376 posts · 211 votes
10y
you can put any name on any deed that you want. the real question here is what would the bank think? in most mortgages, there is a " due on sale" clause. which means the bank can demand payment in full if you sell the house. granted, yes, here, he is not selling, so the bank my not force the right to due on sale. but they may. should they have to foreclose anytime in the future, having a name on the property different than the name on the mortgage could, and probably will put several more steps to the foreclosure for the bank. thats something they are not going to be happy about. if i were him, i would check into refinancing the property. see if there is any equity in the place that he could pull out and use to further his real estate world. at that time, put a different name on the deed, everyone is happy and he walks out of the deal with some cash in hand
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
10y
I suggest you not put your personal home in a LLC, why would he do that? It's not business property and it won't have protection under homestead laws, taxes could go up too. That is not a good move for your residence and the mortgage could be called due. A Trust might be better, any transfer to a revocable trust will be allowed by your lender. :)