Moving an SFR with an existing mortgage into an LLC

[Jesse Ottesen]

There's lots of advice on what could happen if I move my SFR with a mortgage into an LLC. Has anyone actually ever had their mortgage called after moving an SFR into an LLC?

I’m planning on doing it in Buffalo New York, but I am cautious of having my loan called.

[Trevor Stone]

I am pretty risk averse, so when we quickly picked up three Buffalo properties when we got going I called the lender (same for all three props) directly and had an honest convo about it. In our case the same people on the mortgages would be the sole owners of the LLcs so nothing would materially change for the lender. I think they just requested our formation paperwork and we had to make a formal written request. It’s a risk to contact them, but I wanted to avoid them calling our Subject To clause since we were going to do more business with that lender.