Posted on: 12th Jul, 2010 04:18 pm
6 years ago we converted our first home to a rental property and quit claimed it too an llc through our attorney. the new deed has never been recorded/filed. the property has been run though our llc for the last 6 years/paying the mortgage etc.
is our property protected under the llc even though it was never recorded/filed? also, we would like to refinance at a lower interest rate will the unrecorded deed cause us a problem or what should we expect?
is our property protected under the llc even though it was never recorded/filed? also, we would like to refinance at a lower interest rate will the unrecorded deed cause us a problem or what should we expect?
Hi csours!
Welcome to forums!
As the deed was not recorded at the county recorder's office, the deed won't be considered as valid. Thus, the property won't be protected under the LLC. I don't think the unrecorded deed will cause any issues in getting a refinance.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the deed was not recorded at the county recorder's office, the deed won't be considered as valid. Thus, the property won't be protected under the LLC. I don't think the unrecorded deed will cause any issues in getting a refinance.
Feel free to ask if you've further queries.
Sussane
Thank you for your reply. We would like to record the deed with the county so we can be protected under the LLC. We've been filing taxes on this LLC.
Once this is recorded will it trigger the loan to become due?
Once recorded will it cause problems refinancing?
Once this is recorded will it trigger the loan to become due?
Once recorded will it cause problems refinancing?
Hi Cynthia,
It will be the lender's discretion whether or not he will call the loan due. If your loan documents mention that transfer of property can lead to loan payment in full, then the lender may ask you for the payments in full. As far as refinancing is concerned, not all lenders will be ready to refinance a mortgage when the property is in LLC.
Thanks
It will be the lender's discretion whether or not he will call the loan due. If your loan documents mention that transfer of property can lead to loan payment in full, then the lender may ask you for the payments in full. As far as refinancing is concerned, not all lenders will be ready to refinance a mortgage when the property is in LLC.
Thanks