Quitclaim to LLC, Due on Sale Clause Triggered

[Andrew Merritt]

Hello, I have four properties and 10 units. All were purchased in my name. My accountant advised me to set up an LLC for them, so I did. I contacted my lenders to see if it would cause the due on sale clause to be triggered and they said it wouldn't.

Well, it just might for one of the properties at least (each property has a different lender). I got the insurance docs transferred over to the LLC's name, and that's what started everything with the banks. The one lender I'm having an issue w/ said that transferring ownership to an LLC is not a valid transaction and could trigger the due on sale clause. However, if I transferred ownership to a living trust and I remained the occupant, that would be allowed.

It's an investment property and I've never occupied it.  I've responded to them saying as much (via email, they're extremely difficult to get on the phone) and am waiting for a response.  

Does anybody else have experience with this or any ideas on how to proceed?