Quit Claim Deed to transfer deed to an LLC
I recentely started an LLC with the intention of purchasing and protecting my real estate assets. However, I am having problems getting mortgage lenders to loan moneyto the LLC.
I was advised by an underwriter to get the mortgage loan under my name and after the closing, do a quit claim deed to transfer the deed to my LLC. I know that this transfer only relates to the deed, not the loan obligation.
I need advice on the following:
Would this transaction a potential breach of contract with the mortgage company?
Is there another way to transfer the mortgage loan and deed from an individual to an LLC?
What type of lender would provide a mortgage loan to an LLC?
I would greatly appreciate any advice.
SRC="images/forum/smilies/icon_confused.gif"> 
[ Edited by bevtay on Date 04/10/2003 ]
I will try to answer your questions as best as I can. However, I urge you to consult with a lawyer familiar with these issues.
1. The quit claim deed transfer after the mortgage has been filed will not violate the terms of the mortgage if you control 51% or more of the LLC.
2. Since legal title only changes when you use a deed this is your only approach.
3. Most commercial lenders/banks now recognize LLC's and will do deals directly with the LLC as the borrower and title holder. You will still need to sign a personal guarantee.
4. When you consult with a lawyer, if that lawyer is familiar with land trusts ask the lawyer about putting titles of the properties into the land trust and having your LLC be the trustee. In my personal opinion, this provides even greater asset protection. Today, while at the courthouse, I watched a cities law director get thoroughly frustrated because the property that the city was seeking to condemn was placed in a land trust and there was no person that could be threatened with contempt charges.
To your success,
www.realestatesolutionspublishing.com