It seems harsh and does cost some money, but if people are allowed to forget about it with no consequences, everybody ends up paying.

The mortgage due on sale clause would not be triggered because the LLC is still the owner of the property.

I understand the use of a "fictious name trust" it makes sense... but the "John Smith Land Trust December 25, 2007" where the land is deeded to an irrevocable trust fbo John Smith, and the trustee is some third party.As an attorney, I cannot not seem to get a level of comfort.The way I see them isJohn Smith conveys to Jon Doe as trustee of the John Smith Land TrustJohn Smith is the beneficiary, but has no power to remove the trustee or convey the property... so if Jon Doe wants to he can convey the property away, or encumber it.... further.. when the land is put into the trust I am of the opinion it triggers the due on sale clause.... if it is Foreclosed on, then the bank in not secured, and the owners are gonna get nailed for loan fraud....

that obviously triggered that nasty day in '87, but the market corrected that prob so it no longer exists.

I know its harsh...

I forget what triggers the behavior.

If you give the buyer a new mortgage at a higher balance and interest rate, and therefore higher payment, than the one you're paying, you're doing a wrap.Biggest downside is that it triggers the due-on-sale clause in your mortgage, which may, but probably won't, result in your lender calling it due.

Improperly retaining deposits is dealt with harshly in many locales, often with double or triple damages.Jon

Triggered, I think, but this whole subprime mess.

BTW, I do know how to use the search function so I'll try and research before pulling the trigger.