Brewster, NY · Member since 2014 · 3 posts · 1 vote
I have a conventional mortgage under my name that I got before moving the house to the LLC.
Now I want to move house back to me briefly to refinance the mortgage, because conventional lenders do not lend to LLCs. After the refinancing I will deed the property back to the LLC.
During this out-and-in process, do I need to inform the tenant?
I would prefer not to do that if possible, because I don't want to expose myself during this brief vulnerable period without protection, but I also don't want to break any laws or LLC shields if this process is not handled correctly.
The property is still being managed by the LLC. Their lease is between them and the LLC. No change.
Technically, you might need a contract for the LLC to manage the property for you while it's in your name... but I don't know that anyone would actually do that.
I have a conventional mortgage under my name that I got before moving the house to the LLC.
Now I want to move house back to me briefly to refinance the mortgage, because conventional lenders do not lend to LLCs. After the refinancing I will deed the property back to the LLC.
During this out-and-in process, do I need to inform the tenant?
I would prefer not to do that if possible, because I don't want to expose myself during this brief vulnerable period without protection, but I also don't want to break any laws or LLC shields if this process is not handled correctly.
What are your thoughts?
Thanks.
Notifying the tenant is not necessary. That shouldn't be on your radar, it's irrelevant. What you should be worried about is the due on sale clause that will be in your mortgage. Once you deed it back over to your LLC you expose yourself to the risk of the bank calling the entire balance of the mortgage due.