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#2255936 - 06/25/21 01:08 PM Residential Mortgage
Love Cruising Offline
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Joined: Dec 2019
Posts: 74
If you have two borrowers on a residential property (not primary) and the title is being taken under a business entity (LLC) is the Mortgage to be signed only by the individuals of the LLC?

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#2255947 - 06/25/21 02:07 PM Re: Residential Mortgage Love Cruising
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,254
Galveston, TX
If the property will be titled in the LLC, then you need a resolution/operating agreement/etc. or what ever you usually get to determine authorized signers for the LLC to sign the mortgage/deed of trust..
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2255961 - 06/25/21 03:29 PM Re: Residential Mortgage Love Cruising
Love Cruising Offline
Member
Joined: Dec 2019
Posts: 74
Thank you. What if one of the borrowers which agreed to apply for joint credit is not in either of the corporate documents of the LLC. Would they still sign the Mortgage.

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#2255962 - 06/25/21 03:50 PM Re: Residential Mortgage Love Cruising
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,254
Galveston, TX
You are asking legal questions which should be asked of your legal counsel. But unless they are also vested in the property along with the LLC, an individual would not sign the mortgage/deed of trust individually, whether they are a borrower or not.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2255965 - 06/25/21 03:58 PM Re: Residential Mortgage Love Cruising
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 9,999
Toano, VA
The quality of your asset depends on your ability to enforce all the terms of your notes and security instruments. Without the necessary signatures, you could end up with a total loss. These are the kinds of Q&As that can (and should) be reduced to an official procedure that's blessed by counsel.
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...gone fishing.

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