Deeding To LLC And Removing Mortgage Fro Personal
I occaisonally check the records of other local investors to keep an eye on the competition. I have noticed a couple that seem to be doing the following:
1. Buy property in there name
2. Get mortgage in their name
3. Deed property to their LLC
4. Obtain a release of mortgage for them personally
I would like to know how they are doing #4. It usually happens about 5-6 months after #3
That would be the holy grail of investing if you could just take your name off the mortgage.
I am struggling w/ this issue right now w/ 2 rental condos.
This basically triggers the due on sales clause.
I wonder if they get a release from the mortgage, but then personally gaurantee the LLC debt..
PLEASE !!!!!!!!!!!!!!! Sign me up for this course.
Since you know the persons name, and would most likley be a principal in the LLC, have you searched the Secretary of State website for this person / corp / LLC ? Upon finding the name of the LLC (there may be several) then do a search of the LLC at the Reg of Deeds office. You can then see if the properties have liens or mortgages recorderd against them and by whom.
I have most bank REO they want their title co or agent to hold deposit, the escrow works the same so its cool