Quit Claim Deed For Rental Property

[smoke]

Hi I have a couple of questions.

I am looking at purchasing a home for the purpose of renting it out. My banker suggested that I take out the mortgage in my personal name, and than quit claim it to an LLC for liability protection. He also suggested executing but not recording the quit claim so that the lender would never see it and not call the loan.

My question is, if the quit claim is not recorded am I protected from Liability? The house will be insured, however I would really like to put it in an LLC for extra protection.

Thank you in advance for your thoughts and ideas.

[4eyedbuzzard]

You cannot quitclaim a mortgage, only the title/deed to the property, but there are other problems doing this besides the big one of the mortgagee(lender) having the right to call the note due. There are also tax implications in doing so(check this out carefully), title insurance protecting you not the LLC, etc.

I think you should probably consult with a lawyer knowledgable in both RE and taxes and not just a banker before proceeding.

[smoke]

Sorry, I should have clarified. I do realize that it does not apply to the mortgage, and I have no problem remaining personaly responsible for the loan. What I am looking to avoid is any potential liability from what the renter or someone else may do/injure/damage/etc.

As far as taxes wouldn't a pass through LLC be the same as personal?
I was under the impression in Michigan it was simply pass through.