Mortgages in Personal Name versus Business Entity

[Jonathan Taylor Smith]

My first 3 properties were financed with 30-Year Mortgages (@ ~4.5% Fixed) in my personal name (Yes, I know... Bad, Bad, Horrible - Worst thing I could possibly do); and my $300K Liability per property + $3M Umbrella Insurance Policies are not certain to protect me.

I will someday deed these properties to my business entity or trust and see what happens with regard to the dreaded "Due on Sale" clause; however, my latest purchase will be within my entity from the start - but the terms are far less favorable @ 5.5% Fixed for 5-Years (Balloon) amortized over 15 years.

5-Year Balloon scares me to no end, as the property may not be paid off by then, and I cannot be certain of the ability to refinance at that time. This seems to me to be a far bigger risk to take than getting sued over one of the properties in my personal name and the insurance not covering me, so I'm paying more, for a bigger risk... No?

So should I stay awake at night worrying that someone may sue me and insurance not cover? Or should I stay awake at night worrying about this 5-Year Balloon? Currently I sleep like a baby, but as I progress with multiple balloon loans, that may change.

J.T.