I have a rental property (single family house) in the state of washington. It is mortgaged to a bank.
When I was buying this, my agent told me to get it under an LLC so that tenants cant claim against my assets. However, the lender denied that and said that they wont fund the loan if the house is in the name of an LLC. Also, my mortgage broker told me that the bank could recall the loan if I quit-claimed it to an LLC after the loan closed.
So, how do I protect my other assets from a tenant? I already have a umbrella policy, is that sufficient? Are there any other ways to transfer ownership of the house to an LLC or other entity so that my personal assets are safe?