However, specific regulations may apply, and it's advisable to consult with a legal expert or housing authority to ensure compliance and handle the situation appropriately.

Do yourself a favor and read up on your state's foreclosure consulting laws.

Your greatest challenge is going to be running this management company without the appearance of co-mingling all of the LLCs together.Bear in mind that one of the things that you'll be doing here is converting Passive Income to Earned Income via the Mgmt Company and that will be subject to self employment tax whereas had you left everything in the property LLCs, you'd have only passive income. 

My wife is an accountant and business consultant and not to say she knows more about the MHP industry than I do but she is the final decision maker. 

My tax lady said it’ll be considered a loss and not to worry about it.

Basically trying to get the most tax benefits and protection as possible.

For example the last rental property we purchased we owe on it about $86K and if paid off would cashflow an additional $600 per month.Because of our household income I am worried that paying off properties would bring us into tax brackets. 

Some are saying that by adding me to the trust, we will have to pay the transfer tax (for my portion only) because I am not on title.

From what i have heard, taxes 2% of the sales price, insurance varies between $3-5k, and HOA also varies.

Insurance has gone up quite a bit, property taxes and HOA fees as well.