Bank calling a loan due if I transfer to LLC and if interest rates rise

[Dan N.]

Today in episode 777, David said something very interesting (and frightening) about transferring a property that has a mortgage to an LLC.
He said that if interest rates rise, banks can use certain clauses in the mortgage to call the loan due since they are missing out on higher gains by lending to you instead of lending to someone at a higher rate.
Is this something that happens frequently?
Is there an air-tight method to transfer an investment property with a mortgage from my name to an LLC without having to worry that the bank can call my loan due?

[Caroline Gerardo]

All conventional loans in the past 10 years have clear due on sale clause(s). You signed a contract, it's binding to not transfer the title. The bank may find out when you try to get insurance to match and the loss payee itemizes who is covered. Your insurance agent is going to struggle with this as well. Plaid paints striped top may cause you pain if you have a claim as well.

When you transfer from whatever vesting as real person(s) to LLC it is a sale. The property can also be re-assessed.

If I'm the asset manager at the bank/servicer/investor and your loan has any hiccups- missed a payment, forced place insurance, lots of phone calls any number of items can flag your file and the servicer puts you in the problem category and dumps the file to the hard nails servicer. They review and servicer/investor has every right to call the loan. Loans in the 3 percent range yes they want a better return, they won't tell you that but think about it. If you are investing in notes you want higher returns. 

There is no air tight method. There is no "it's okay to switch it back" when they catch you. All the gurus and guys who charge $$ for these protection plans are there to make money.

Don't do conventional loans if you want to vest in entities. Close loans where the lender allows LLC vesting from the start.