Posted by phil fernandez on January 16, 2001 at 15:30:51:
Seasoning shouldn’t be an issue. One, banks are not pouring through transaction records looking to find DOS violations. They’ve got better things to do like making loans and earning interest. Now this is of course assuming you are making all of your mortgage payments. Again, the last thing the bank wants is to foreclose on a performing loan. Whether you transfer the property to a LLC or corp, it would still violate the DOS clause.
I’m not an attorney. According to Bill Bronchick, the correct way to transfer a property out of your name would be to transfer it into a land trust which then gives your LLC the beneficiary interests of the trust. This would be for rental properties which I have. I have skipped putting my properties into the land trust first, but probably will and then do as Bronchick says, have the land trust assign the beneficial interests to my LLC’s. But that’s for another day.
Go to the How To Articles and look up everything Bronchick talks about pertaining to the due on sale clause, corps and LLC’s. Happy reading.