I asked this in a response to another thread, but didn’t get a response, so I’ll ask in it’s own thread …
What I’d like to know are the ramifications of calling the lender and asking permission to move the title from my personal name into an LLC but keeping the DOT/mortgage in my name? Has anyone been successful at doing this? Has this raised suspicion with the lender that later came back to bite you? Other comments?
no need to inform them. It shouldn’t come back to bite you, it’s done all the time.
I would definately call and ask. There’s no harm in that. If you do it and they find out later, the due on sale clause of your loan may be called due.
Dre
I beg to differ. If you inform them that you intend to change the title I promise you that their answer will be no. If you do the quit claim deed, they are not notified and even if they find out so long as you are making your payments on time the will not accelerate the mortgage.
You can and should consult your attorney for the best advice but this is something I have done on every deal I’ve ever done.
David
STEPHEN,
JUST BECAUSE SOMEONE DOES IT WITH SUCCESS, DOESN’T MEAN THAT YOU CAN DO IT LEGALLY WITHOUT THE LENDER’S PERMISSION. YOU ASKED WHAT THE RAMIFICATIONS WOULD BE IF YOU ASKED. THERE’S NEVER A RAMIICATION IF ASKING, ONLY IF YOU DO WITHOUT ASKING!!! IT ALSO DEPENDS ON THE LENDER, IS IT A NATIONAL LENDER OR A LOCAL LENDER? WHAT TYPE OF RELATIONSHIP DO YOU HAVE WITH THE LENDER? I HAVE EXPERIENCED BOTH SIDES OF THE COIN, THAT’S WHY I’M GIVING THIS ADVICE. YOU COULD CALL YOUR LENDER ANONOMOUSLY, AND ASK IF YOU CAN DO IT, THAT WAY IF THEY DO SAY NO, YOU COULD MAKE YOUR OWN DECISION OF WHETHER OR NOT YOU STILL WANT TO DO IT. AT LEAST YOU WOULD KNOW. DAVID IS RIGHT ON THE MONEY ABOUT CONSULTING YOUR ATTORNEY FOR ADVICE.
JUST MY $.02…
DRE
Some interesting discussion on this same topic here:
http://www.reiclub.com/forums/index.php?board=26;action=display;threadid=14824