OK you guys, I agree with all.
But what do you recomend for this guy?
He put the property into an LLC without the bank’s permission, which he shouldn’t have done, but it is already done. You can’t unring the bell.
The insurance has to be transferred into the title of he owner. That had to be done.
He got caught by the bank. So the bank already knows and that can’t be undone.
I can’t see any other option except to throw himself on the mercy of the bank and beg them not to call the loan. His only chance is to show them that he has not sold the property without paying off the mortgage. That means he has to show him that he is the owner of the LLC, and thus, still the owner of the property. Then he prays that the bank doesn’t want any more foreclosures.
What difference does it make if he tells the bank that he owns the LLC? Anyone can find the owner and the board of directors of any LLC, simply by going to whatever agency in the state registers LLCs.
There isn’t much protection in an LLC in real estate, anyway, because the owner is still liable for his personal actions, and it’s hard to have real esate and not do anything at all with it.
Not to mention, that if the original poster didn’t even know he could get his loan called for putting the property into an LLC without permission, he probably doesn’t know how to maintain it as a strictly separate identity. Someone didn’t advise him right i the very beginning, so what other mistakes have been made?
What other option does he have now, except to try to straighten it out with the bank? They might work with him if he is upfront and admits he made a mistake. They aren’t going to be so acomodating if he tries to run and hide.
He sure as shooton’ is not gling to be able to refinance it quick in the name of a brand new LLC.