Legal Question in Business Law in Massachusetts

Re: transfering propertiy to a l.l.c

have you considered asking the mortgage company to not consider a transfer of title to an LLC as an alienation that would accelerate the loan by showing that you are willing to subordinate it to their mortgage?

Re: transfering propertiy to a l.l.c

You can form an LLC at any time for any purpose. The transfer of title without the consent of the Mortgage Company could as you state allow them to accelerate the loan. However, you could ask the Mortgage Company to allow the transfer subject to their lien (subordinated) and have you reaffirm your personal obligation for the loan. If not acceptable, then you could sell the property to the LLC and refinance assuming you can find a new lender.

I hope this was helpful, please feel free to contact me if you have more questions.

Re: transfering propertiy to a l.l.c

You might be able to accomplish the transfer (as the two other attorneys suggest is possible); however, it is unlikely to accomplish what you are seeking. As long as you own the LLC, putting property into it gives you no protection against creditors as they can simply levy against your LLC ownership interest and thereby reach the property. Also, there are fraudulent conveyance issues -- better consult with a qualified attorney before you spend money on forming useless entities.

Best wishes,

LDWG