Posted on: 08th Aug, 2007 09:28 pm
my wife and i are looking to quit claim deed our rental property over to our llc. we understand that our names will remain on the mortgage if we do so. our question is "does lender need to notified of this transaction?" my wife and i are the only representing agents of our llc.
Hello Luke,
Even if your names will be on the mortgage, you have to notify the lender about the transfer. It is better if you do that and avoid any sort of trouble or disputes with the lender in future.
Even if your names will be on the mortgage, you have to notify the lender about the transfer. It is better if you do that and avoid any sort of trouble or disputes with the lender in future.
"My wife and I are looking to Quit Claim Deed our rental property over to our LLC. We understand that our names will remain on the mortgage if we do so. Our question is "Does lender need to notified of this transaction?" My wife and I are the only representing agents of our LLC."
Property was in your name when the mortgage was taken but after the LLC is formed rental property will be in the name of the LLC. You need to inform the lender about it to know if they will require the mortgage to be refinanced or not because of change in title ownership.
Miller
Property was in your name when the mortgage was taken but after the LLC is formed rental property will be in the name of the LLC. You need to inform the lender about it to know if they will require the mortgage to be refinanced or not because of change in title ownership.
Miller
Thank very much for your prompt response to our question. However I have another question for you. Is there any way for us to take advantage of the beneficial interest in our rental property without having to refinance the property under our LLC?
Luke, you need to talk with your lender on this issue. It is likely that lender would ask for you to refinance. But he can also let you continue without having to refinance, with low percentage of such likelihood.