I saw recently that Fannie Mae released new guidance on the due-on-sale clause where they are no longer enforcing when someone transfers ownership to an LLC owned by themselves.The quote and link below:"A limited liability company (LLC), provided thatthe mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence)."

Hello Bigger Pockets Forum,While I was in my MSIRE program a few years ago, I had a professor who asked us to custom design a variety of lending/ financing options that would best suit both the borrower and lender lan...

I LIKE the idea of taking, say 500K, putting it into ONE account that is either "cahs" or a combo of properly diversified short term instruments, (some short term investment grade notes, floating rate notes or funds, maybe even some crowdfunded or P2P ... sort of create a portfolio of things that by themselves have downside risk of 10% but together have almost no downside risk).

Didn't do that one but both Joe and Trevor were hugely instrumental in my getting into and growing in this business.

No evictions, undischarged bankruptcies, or major felonies (anything violent, burglary, possession of a forged instrument, or identity theft).  

Any debt instrument must be non-recourse, meaning no personal guarantee from you.  

Often, it is a non-client who brings the complaint trying to break the instrument your client approved. 

Our real estate agent was instrumental in helping and buffering the frustration.

Our real estate agent was instrumental in helping and buffering the frustration.

D1-4.1-02: Allowable Exemptions Due to the Type of Transfer (09/09/2020)Share this answerThis topic contains information on allowable exemptions due to the type of transfer.Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:a limited liability company (LLC), provided thatthe mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).