I understand the processor bankruptcy caused a big disruption but it also seems like FTF (Upright) was overly leveraged because they've proceeded mass sell their loan book, which means if you held one of the loans that will be sold you will receive no interest until due diligence is completed and possibly a hit to principal depending on the final price the buyer pays. 

what's certain is Fed is already in bankruptcy is they follow standard accounting practice like a bank.

That code section states:(1) “Prospective owner-occupant” means a natural person who presents to the trustee an affidavit or declaration, pursuant to Section 2015.5 of the Code of Civil Procedure, that:(A) They will occupy the property as their primary residence within 60 days of the trustee's deed being recorded.

@Andrew T Bolton since this subject is for a "primary home" this basically this comes down to where you are declaring your residency. 

Explanation of Refinancing Option for Foreclosure and BankruptcyWe understand that navigating financial difficulties such as foreclosure and bankruptcy can be overwhelming.

The document used to create the Agent Trust is a Declaration of Trust Agreement and is a private document that is not recorded or filed in the public records.

I, personally, would consider any other option, including bankruptcy for your sister if she really has that much debt that she can't pay, rather than ask my nephew to give that much equity away and start over smaller with a much higher rate.         

I’m wanting to have consulting and deal structure to protect from heirs, bankruptcy, death, due on sale.

That's just a d-bag way to consider things, it is, no way around that simple fact, your declaring your total disregard for anything except a singular focus to serve YOU.

I said that the same protection can be had for less money than having mortgages by putting the paid off properties into trust.most states have upheld the “Illinois land trust” — has nothing to do with Illinois per se. it’s a description of how little a trust can do without being declared passive and therefore executed.