Due On Sale - Estate Planning

[Daria B.]

In my estate planning I, like many, am looking at the "due on sale" clause (if) within the 2 mortgages for my rentals.

I've yet to find these terms or similar definition within the mortgage documents and am still rereading them because mortgage docs have so much verbiage it can easily be missed.

With that said, I am looking at land trusting my mortgaged properties and setting up an LLC for the land trusts. May not be phasing this correctly but I have spoken with people that do asset protection and understand what direction I am going.

The question I have relates to (I guess refi-ing) getting a portfolio loan for the existing mortgages to start off the recorded properties into the land trust.

Yes, I realize that I can just do the land trust and deed the properties into the land trust name, BUT, here in lies the due on sale that I understand "can" occur due to the appearance of ownership.

Is it possible to get a portfolio loan without w2 wages? 

The only reason I'm thinking on these terms (and yes it's spending more money to refi when it shouldn't be necessary since there is no monetary benefit) is to find a way around the due on sale.

Thanks

[Wayne Brooks]

The due on sale clause is in the Note, not the mtg. There is also misinterpretation of the due on sale verses "estate planning" exemption.  The Garr St Germain act specifically exempts a transfer for estate planning purposes from the due on sale clause.  But, the act specifically excludes transfers into an "inter vivos living trust".....not a land trust.