In her book she said if a investor put a deed in a land trust to cover up the due on sale clause, this action could be consider a mortgage fraud; because if a court rules that the intent was to keep the bank from exercising its legitimate rights by hiding an important fact (deed transfer), I can be accuse of mortgage fraud.

None of this is a done deal, but it has potential to be a rare opportunity for RE investors that exercise diligence and intelligence.

In a Lease Option the Title does not change hands until the Option is exercised. 

As an exercise, I would be curious to see what other MSAs and counties have seen increases or decreases, along with their tier designation.

This ends up being the same thing financially in the end for the buyer if they end up exercising their option to buy.As the seller, this ends up netting out the same as rent credits...if the buyer exercises their option.Now, if the buyer doesn't exercise their option, the seller gets full income from the full rent each month.

I am sitting here with my $10.00 Casio calculator and I suggest you try the same exercise.  

This is the only scenario that clearly benefits the original owner but the benefit is typically only some high rent amount.In summary, the downside for the current owner is so much greater (loosing out to huge appreciation) and more likely to happen (historically the appreciation has been outstanding) than the upside (that the tenant does not exercise the option and the owner has been able to collect higher rent than a traditional rental).I did know a couple of tenants in San Diego that had a lease options. 

You must exercise your Option before or when the person you sell to exercises their Option or pays you off.

@Jay Hinrichs yes our number one goal is for the tenant to exercise their option to buy the property.

If he is their landlord and he has something in the lease they signed.... it's different.If your local has regulations regulating basketball hoops or areas people can exercise/congregate (they can override the lease).