Had we scheduled the closing in the morning, there would not have been an issue.The only potential upside is that a disaster area declaration triggers changes in mortgage rules that could beneficial to the buyer. 

That would be for the deed, so use care not to trigger the acceleration clause with your lender.

You have three choices...transfer the property and keep the loan in tact hoping they won't trigger due on sale, refinance into a loan that allows it, or simply leave things as they are. 

For those who’ve structured wraparound mortgages, what strategies have you used to avoid triggering the due-on-sale clause?

BUT I have also heard that it could trigger a due on sales clause, bringing the note fully due at any moment.

Don't over think this, pull the trigger actions create results. 

However, to my understanding, a 1031 conversion of an investment property to your primary residence after a safe harbor of two years does not trigger a tax event.

A few months go by and unbeknownst to me the escrow account had now drawn negative which triggers the lender to no longer apply what’s considered a “partial” payment to them, given that I’m now paying less that what’s due given the escrow increase required but not relayed to me even though I expected it at some point.Last month I’m on Zillow looking at the value of my properties.

So brainstorm the different options then pull the trigger!

One of the other factors that kept me from pulling the trigger is that the city has never passed any real STR regulation.