Question about LLC's, deeds, and mortgages

What is the name of your state? CT

Hi all. I am planning on purchasing a single family residence in CT, which I later plan to rent out. At the moment, I have little income or assets to my name so my parents elected to be the principles on the mortgage. However, they want no ownership in the property and do not want to be held liable if a future tenant decides to file a lawsuit against us.

The mortgage company I am dealing with will not allow us to buy the property in the name of an LLC and have my parents as sole principles on the mortgage. They claim the mortgagor must have an ownership interest in the proptery, which is exactly what we don't want. My question is, how can I protect my parents' assets while still borrowing in their name?

I don't mean to answer my own question, but one solution I was presented with was to buy the property in their name, then quit-claim it over to an LLC. Does this protect them even though this action is against the mortgage companies rules? In the case of a lawsuit, can ownership be reverted back into their names, inturn exposing their assets?

Any comments or additional suggestions would be greatly apreciated.

Thanks in advance,

Glenn

[HomeGuru]

Originally Posted by glennmacdady

What is the name of your state? CT

Hi all. I am planning on purchasing a single family residence in CT, which I later plan to rent out. At the moment, I have little income or assets to my name so my parents elected to be the principles on the mortgage. However, they want no ownership in the property and do not want to be held liable if a future tenant decides to file a lawsuit against us.

The mortgage company I am dealing with will not allow us to buy the property in the name of an LLC and have my parents as sole principles on the mortgage. They claim the mortgagor must have an ownership interest in the proptery, which is exactly what we don't want. My question is, how can I protect my parents' assets while still borrowing in their name?

I don't mean to answer my own question, but one solution I was presented with was to buy the property in their name, then quit-claim it over to an LLC. Does this protect them even though this action is against the mortgage companies rules? In the case of a lawsuit, can ownership be reverted back into their names, inturn exposing their assets?

Any comments or additional suggestions would be greatly apreciated.

Thanks in advance,

Glenn

**A: you have asked some very good specific questions which exceed the general nature of this website; thus require consulation with your own personal attorney.

Well thanks for your opinion Guru, but I didn't come to a site called "FREE" Advice to be told to hire a lawyer...

Anyone else have an intelligent suggestion?

[HomeGuru]

Originally Posted by glennmacdady

Well thanks for your opinion Guru, but I didn't come to a site called "FREE" Advice to be told to hire a lawyer...

Anyone else have an intelligent suggestion?

**A: Hello? Anyone home? That's the free advice. Take it or leave it.