I've done a lot of research and even worked on running numbers for certain options (just as an exercise), but I'm now looking forward to jumping in.

When you sell your old property you exercise your option and purchase the new property.4.

You are absolutely correct - I have never done this exercise. 

The fact that a company has stoped paying interest on a promissory note and is exercising an option stated in the note to convert the note to equity is not in and of itself indicative of any fraud.  

As I stated above, please exercise caution and make sure fully executed documents are received prior to wiring funds.

I guarantee you don't have the right to "sell" that property as you've done because the bank has a lien against that deed which must be paid if/when you sell, and you almost guaranteed to have language that you are supposed to notify the mortgagor if/when you sell the property so that they can exercise their due on sale clause. 

Hi Treza,Not sure where you are in the process there, but when your ready to exercise financing options please reach out, it's very difficult to find a ground up program for inexperienced borrowers without having an experienced GC sign on the loan with you which in turn is not easy to find. 

I realize this may be a fantastical scenario with no feasible solution but I thought it would be an interesting exercise.

Flagstar may exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC.

So there it is, no exercising eminent domain for a quarter trillion dollars.