Is there a way to get my name off of a mortgage?
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Is there a way to get my name off of a mortgage?
I have a rental property that is in my name personally on the mortgage. I moved
it to an LLC. I am wanting to have the LLC personally guarantee to take over the
mortgage. Is there a way legally to remove my name from the mortgage? I owe
about 56K on the property.
Asked on January 26, 2017 under Real Estate Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
There are only two ways to remove yourself from the mortgage and have the LLC take it over:
1) With the written consent and agreement of lender, which, however, they may withhold at will, for any reason or no reason (e.g. they just don't want to do it). Since the lender is unlikely to allow a person to be replaced by an LLC, since an LLC is generally a less-safe borrower (e.g. it can cease operations or shut down to escape liability, which a human being cannot do), while you can ask them about this, they are unlikely to comply.
2) By having LLC take out a new mortgage which will be used to pay off the old one, leaving just the mortgage in place. If you can find a lender willing to grant the LLC a mortgage without also requiring you to personally guaranty it (since if you have to personally guaranty the obligation, that defeats the purpose of removing yourself from it), you can do this.
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