Hello,
There is a rental property that was purchased with an individual name holding title to the property and holding the loan. During the period of ownership, the title was transferred from the individual to an LLC for liability protection, but the loan remained in the individual's name. The property is now held under an LLC.
If the property ends up going into foreclosure, before the foreclosure occurs, should the title be transferred back to the individual's name? The LLC is holding title to other properties as well. Therefore, to avoid the LLC's other holdings from getting seized, is it recommended to change the title back to the individual? The fear is that if left in the LLC, even though the lender is not supposed to attach to other properties and must get the property as its only collateral, it is best not to leave it to chance. The property is located in AZ, but the LLC is in CA.
Thank you!
There is a rental property that was purchased with an individual name holding title to the property and holding the loan. During the period of ownership, the title was transferred from the individual to an LLC for liability protection, but the loan remained in the individual's name. The property is now held under an LLC.
If the property ends up going into foreclosure, before the foreclosure occurs, should the title be transferred back to the individual's name? The LLC is holding title to other properties as well. Therefore, to avoid the LLC's other holdings from getting seized, is it recommended to change the title back to the individual? The fear is that if left in the LLC, even though the lender is not supposed to attach to other properties and must get the property as its only collateral, it is best not to leave it to chance. The property is located in AZ, but the LLC is in CA.
Thank you!
