Under LLC, if members bought properties for LLC who is responsible for mortgages?
LLC was formed, then some of the members bought properties and are on title on homes as their sole owneship, using LLC funds to purchase. Now real estate has dropped greatly and some members want to drop out of LLC, can they do that?
Tags: bought, members, Mortgages, properties, responsible, Under
Your question is regarding mortgages, but you refer to the members using LLC funds. Did the LLC guarantee mortgages for its individual members?
Whoever applied for and signed the mortgage documents, (unlikely to be the llc) is the responsible party. If the members of the LLC have a written agreement about the mortgage payments and responsibility, you may be able to pursue legal action against the non-paying member, but that won’t remove the obligation of the person “on the loan” to the lender.