Mortgage Question...changing the name

salty87

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I'm setting up an LLC to hold various assets. One of them is an old house that we'll be renting out soon. The mortgage is currently under my name. I'd like to change it to the LLC. Is it possible?

I got the call center run-around when I called Wells Fargo..."I'll have to transfer you to someone else"...who has no idea either. Repeat.

Thanks
 

southkogs

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Seems to me like that would have to be a transfer of ownership to the LLC either by sale or transfer of deed. I suggest calling a local title company.
 

Boomyal

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Seems to me like that would have to be a transfer of ownership to the LLC either by sale or transfer of deed. I suggest calling a local title company.

I'll be interested to hear the results. I have a small commercial building that is in my name. For liability purposes I occasionally think that I should have it in an LLC.
 

Bayou Dave

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You would do a quit claim deed into the LLC's name. But, read your mortgage documents. They usually have a clause in there saying they can call the whole mortgage balance due and payable unless they give you permission to change it into the LLC's name.
 

salty87

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Thanks, DRS4164. Using the term 'quit claim deed' got me to the correct department (called Assumptions at Wells Fargo). My loan would come due with that change. It would need to be refinanced as a commercial loan in order to have an LLC as the borrower.

I have a business that needs office space. The house needs a renter. Killing 2 birds by renting the house to the business. My accountant suggested setting up an LLC to manage the house. Hopefully I can just leave the mortgage in my name and continue with the plan.
 

Bayou Dave

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Thanks, DRS4164. Using the term 'quit claim deed' got me to the correct department (called Assumptions at Wells Fargo). My loan would come due with that change. It would need to be refinanced as a commercial loan in order to have an LLC as the borrower.

I have a business that needs office space. The house needs a renter. Killing 2 birds by renting the house to the business. My accountant suggested setting up an LLC to manage the house. Hopefully I can just leave the mortgage in my name and continue with the plan.

Ya.... the LLC needs to pay rent to someone. Might as well pay it to yourself.
 

Boomyal

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........I have a business that needs office space. The house needs a renter. Killing 2 birds by renting the house to the business. My accountant suggested setting up an LLC to manage the house. Hopefully I can just leave the mortgage in my name and continue with the plan.....

I do believe you can do that. The accountant would know best. It would be similar to transfering property to a trust. You don't have to transfer title to do that legally.
 

southkogs

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I have a business that needs office space. The house needs a renter. Killing 2 birds by renting the house to the business. My accountant suggested setting up an LLC to manage the house. Hopefully I can just leave the mortgage in my name and continue with the plan.
Double check zoning regulations for your area. Depending on the type of business, you may not be able to do that.
 
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