Triggering due on sale clause

[Doug O.]

So I'm wondering who here has any direct experience or knowledge of triggering the due on sale clause in a loan from transferring to an LLC? Have been reading about people who heard about this happening, but never heard from anyone who has actually done it recently either with or without consequence from their lender.

I'm debating whether to attempt it, since all of my experience with it was from more than 5 years ago when it could be done with little fanfare from lenders. Now that the climate has changed, it seems that the rumors floating around are that you will get called by your lender if you transfer out of your personal name to an LLC even if you continue to pay on time as in the past.

Anyone??

[Brie Schmidt]

I was at a closing a few months back and the lender told me he just had it happen to two of his clients.  One allowed him 30 days to transfer back and the other did not.  

Personally, I do not see the point, if you buy the property in your name, and then note is in your name, when you transfer to a LLC in your name you have already established enough of a ownership trail that any attorney suing the LLC will be able to show the connection therefor negating any "liability protection" you thought that you had.