limiting liability after the fact?

[ian_m]

What is the name of your state? Missouri

I have a few small rental properties in my name and am wanting to LLC, what is the best way to get the current mortgages into a corporate name, though? Quitclaim deed? Refinance?

[nextwife]

Refinance.

[ian_m]

dang! That's the expensive way around. No other way?

[nextwife]

Deeding the property does not change the liability under the mortgage - but it could TRIGGER the due on transfer clause.

[ian_m]

Alright, so I need to refinance. How do I convince a lender in these times to lend to a LLC whose only assets are the rental building, and only income is the rents? Would seem they would be EXTREMELY hesitant to do that, since the average Joe can barely refinance his primary residence nowadays.

[nextwife]

You are correct. A lender wants to lend to an entity to which they have recourse. What I normally see, if the LL does not have significant resources, is for the title to go to the LLC, but the loan also be to them personally, or to be cross collateralized with other assets.

[relievemystress]

Refinance is not a bad option but before you go in for refinance I request you to explore other options.Since you are in a crunch situation,it will be better if you could consult an real estate expert to give you some lead in this matter.


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