Moving Property Into LLC Without Bank Permission
I need to move a property into an LLC. My lawyer is ready to go, but asked me to get a letter from the bank holding the mortgage saying they don't object. I spoke with the bank and was told, "We don't object, but we're not going to give you a letter saying you can do this."
My question is what risks am I running if I go ahead and move the property into an LLC, don't tell the bank about it, but of course continue to pay the mortgage as usual?
And if there are risks involved in doing this, what are the chances that something negative really will happen?
Given they have already gave you verbal permission, I don't see why you wouldn't. The decision rests with the lender to whom it reports the payment history.
Let's see if I revive this topic, whether there might be some more advice from others.
Homeinvestor, thanks for your reply. It makes sense and seems logical. But I'm still nervous about doing something like this without having a piece of paper to fall back on.
Maybe someone else will be able to tell us how they dealt with this issue.
Thanks all.
Assuming your payments stay current the bank is not going to do anything.
Take your loan officer out for a drink. explain to him that this restructuring of your ownership is preparatory to doing more deals. Tell him a few jokes and brag politely about how much money you are going to make and how you're planing to become a mogul. Explain that you'd really like to have a lender you could work with on a regular basis and how much easier his life will be if he can get one guy to bring him loans again and again than if he has to underwrite each deal from scratch. Buy another round or three of drinks. Explain that not being able to get a simple release letter does is exactly the sort of uncoperative position that would eliminate a lender from future deals. Smile a lot (remember bankers are a more primitive culture and a great deal of their communication is non-verbal). Call up the next day and ask again (through his hangover) if you could get a release letter. If not, screw 'em do what you want.