Will, M and L had an agreement to share rents with the consent of the owner.

This is totally acceptable by all Fannie Mae and Freddie Mac lenders as long as the trust is a revocable trust.

In tax terms, you can get a guaranteed payment, but it's effectively a distribution to you as a member.Note that your LLC may not have a board of directors, or need a resolution/consent (motion isn't quite right) to do the distribution--it all depends on what your operating agreement says, or if not stated there, defaults under the law of the state where the LLC was formed.  

I have seen credit card charges be reversed and the money taken back from the landlord bank account if the tenant claims it was charged without their consent (when it wasn't) and land lords losses out.

I’ve asked PornHub to remove the material shot in our home without our consent, but I imagine that will be ignored, too.

Inter-vivos revocable trusts are a great way to keep a target off your back. 

Allows revocable Transfer On Death Deeds for residences up to 4 units as well as agricultural land up to 40acre?

If you are doing it solely for asset protection purposes then maybe a Revocable Trust would be a better method to make that happen as that is used typically for estate planning purposes anyway.

I feel at this point it is best to get authorization and call the lender and find out what there true stance on the situation is, present them with the option of doing a loan mod/principle reduction or would they prefer to sale to an investor for all cash now with the written consent to sale the home back to the wife or option #3 foreclose and she buy it as a REO.

(One of his reasons was that the Intervivio Trust is financeable in non-commercial transactions) The lawyer is right -- Fannie Mae will lend to a Revocable Living Trust.