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Mortgage against a home owned by an LLC
A managing member of a California LLC (formed less than one year ago and soley for the preservation of an inherited home) wants to create a mortgage against the home.
Attorney answers (2)
Reputation Level 20
Answered over 2 years ago.
Real Estate Attorney in Newport Beach, CA.
This is a follow-up to previous question. Banks will typically not loan to LLC's. They will require the property to be transferred to the individuals to take out the loan. After the loan it can be transferred back into the LLC. The fact that the LLC is only about a year-old is irrelevant. Again, remember that if the other 2 members disagree the loan cannot be done.
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I don't hold California law licensure so this is not legal advice, just my analysis of the facts you state above. If you need legal advice, consult a lawyer who holds California licensure.
You want to refinance an inherited home which your LLC owns. You want to know whether the LLC has to have been around for a certain amount of time in order to refinance. I think the answer is, that's a question for the financial institution you want to borrow money from. They are the ones that have criteria about whom they'll lend to. An LLC has legal personality and can be a borrower, legally, from the moment it's created and you have the certificate of organization in hand. But being legally able to borrow funds doesn't mean someone is necessarily willing to lend them. That's the lender's call, not the law's. Just my two cents. Again, if you need legal advice, don't rely on what I said here, but consult a lawyer who holds California licensure. That's not me. Good luck. 1 person marked this answer as good
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