Seeking advice on LLCs with Mortgaged SFRs
Have heard two sides to this:
1) mortgaged properties cannot be put into LLCs and the bank will call the loan (due on sale etc). Only option would be umbrella insurance.
2) banks never find out you put it in an LLC and just ask you to put it back in your name if they find out (just a slap on the wrist)
Anyone have personal experience with this?
Planning on getting rental #2 and want to be protected against the “slip & fall” and exploring available options.
Thanks!!
Most Popular Reply
5/3 bank, which is national, and a local bank in my area. I think smaller banks may have a different stance, which makes sense i suppose. I do know that neither would put the LLC on the mortgage because they needed the individual to be responsible if things go bad. They're smart enough to know that there isnt much recourse against a 1 person LLC, unfortunately for us.