Tennessee LLC lawyer question
I have read through different forums and not found someone with a similar question so I thought I would post.
I bought a triplex in Knoxville, TN under my name and have been rehabbing it. I've been house hacking it while repairing the house and have increased rents 30% after updates. I'm planning to move out of the property and into another house soon. I'd like to move the ownership of the property to an LLC but the mortgage company, Flagstar bank says they only allow transfers to trusts. I have had friends that have said that I can just transfer it and call the mortgage company but I read horror stories about the mortgage company calling the mortgage fully due. How should I proceed to transfer my mortgage to an LLC? Is refinancing the only option? I only bought the property 10 months ago so I am unsure of the financial benefit for doing that. Thanks for your help!
I'm not an attorney, but if your lender wants to use a trust, perhaps it would be possible to move the property into a land trust, then have the LLC own the land trust. You name will still be on the chain of title, but at least you'll have LLC protection and some anonymity.
It can get complex and expensive, not to mention the lender can get very antagonistic, so speak with an attorney and get the lender's blessing before you make any final moves.