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FortWayne
2013 Mar 7, 5:28am
You can't just change who owns the loan without permission from the lender. Talk to your lender, see if they would be willing to do so.
FortWayne is just talking about the loan. Sure you can't change that without permission of the bank. The title is a different story.
You need to read your mortgage, most have clauses for title transfer which gives the lender the OPTION of demanding payment, but there are no laws against it. In the end it really just comes down to your mortgage contract. I suggest you read it looking for clauses around title transfer.
I've done some research (and spoken to some lawyers about this). Basically the risk of the note being called on the transfer of the title is very low. All the bank *really* cares about is that the loan keeps getting paid. So long as the loan keeps getting paid you won't run into issues. In a non-recourse state like california, if you ran into issues, you could always default on the loan and transfer the title back to the bank.
That said, I'm risk adverse and would advise against doing it. Just beware its actually better not to ask if you do decided to do it. ;)
Has anyone here had experience moving an existing personal mortgage under a LLC? From the little I was able to find it would seem that most mortgages prohibit this because it screws up the underwriting. But I know an investor who says he does it all the time. He seemed baffled by my assertion that he's running a massive risk that the lienholder will call the mortgage.
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