Deed vs. Mortgage

**Tally** · 08-12-2010, 05:38 PM

I am a member of an LLC that owns a rental investment. The deed is in the LLC and the mortgage is in name of the LLC members. The mortgage is close to foreclosure and my question is if the bank have a difficult time getting the property since it is in the name of the LLC?

**jericavilla** · 08-12-2010, 06:33 PM

interesting post..
topic should be fun to discuss i will sit and follow what the pros say about this.

**Greg** · 08-16-2010, 06:58 AM

The paper trail to the property goes through the LLC members so not only will the bank be able to take the property they will be able to hold the members liable if you are in a recourse state.

**luigi266** · 08-18-2010, 12:54 PM

Curious about this myself

**White Bear Lake MN Homes** · 08-26-2010, 09:09 PM

Originally Posted by Greg

The paper trail to the property goes through the LLC members so not only will the bank be able to take the property they will be able to hold the members liable if you are in a recourse state.

Greg is right on the money here. There is a paper trail right to each personal owner stake in the property because each personal owner is on the mortgage. In fact, even if the mortgage was in the name of the LLC, unless your LLC is setup with attorney drafted Articles of Incorporation and it records monthly meeting minutes and has a board of directors appointed, etc...an aggressive attorney will likely shoot holes in your LLC, and find a pathway back to each personal owner. Sorry for the downer news...

**jimmyjhonson** · 05-05-2011, 05:25 AM

Case in trusts are probably one of the safest investments you can make offers you a high return, but what exactly is a matter of confidence, or Trust Deed? business confidence is a document that is used to ensure debt to your home as collateral.