Hello BP,

Bought a house a few years ago and I currently use it as a rental. I have about $40K equity but I lived there when I bought it. How can I transfer ownership to an LLC without paying off the mortgage or triggering the due on sale clause?

You would transfer title via deed. You may still trigger the due on sale clause however.

@Lance Lvovsky

I have never triggered the due on sale clause in 40 years, after changing ownership, as long as I continued to make the payment- which I did. If for some reason it triggers "due on sale" have an attorney go to the St Germaine act. My attorney told me that is what he would do about 40 years ago if it happened to me. Better to ask for forgiveness than beg for permission in these circumstances.  

@Carl Fischer

I have never had a client trigger the due on sale clause. With that being said, as a trusted advisor, it would not be prudent for me to tell clients or other people on BP to transfer title without understanding the possible repercussions...

@Lance Lvovsky @Carl Fischer @Account Closed Thanks for the comments.  I may transfer in conjunction with a refinance.  Or just roll the dice.  I'm more of a ask for forgiveness type guy.

John Anderson what does the having insurance vs. llc liability issue have to do with this thread? Very Joe Gore like response.

What's the difference between John Anderson or steve b?  The are statistically fungible as far as unique identifiers