Trust us!

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If anyone has told you to put the title into a Trust to avoid the Due on Sale Clause - they are lying to you!  The problem is that they likely don't know that they don't know - they've watched all the YouTube videos, listened to the gurus driving 6-figure cars and think they know what they are talking about.  They are wrong.  A Trust is just another layer.  If what's inside doesn't match the legal requirements - it does nothing!  Check the other section under INVESTORS ONLY in the SUBJECT-TO tab to see info specifically on the Due on Sale Clause: 

I'll try and be politically correct about this.  There is NO reason to have the Sellers involved in a Trust after the closing - OR even AT closing.  The MOST they should be involved is transferring the property into the Trust/to the Trustee - to CREATE the Trust. That is it.  Someone is going to tell us that the way they were told to do it ... that the Sellers remain as the initial Beneficiaries and IMMEDIATELY transfer their beneficial interests to the Investor's LLC or some person the Investor designates.  

We understand.  BUT why? 

There is only one reason to have two separate documents - ONE to show the Lender that the Seller is the Beneficiary to stop the due on sale clause ... the OTHER is to show the Judge if the Sellers ever claim they still own the property and sue you.  Smells funny, right?  You can't have it both ways.  This method is just setting those up for participating in Mortgage Fraud! There, I said it.  If you tell me the Sellers are going to really stay involved -or its all being done for estate planning and asset protection purposes ... that's something else.  It's also unlikely for Investor to do this for Sellers.  

A Trust is set up straight forward:  The investor tells us what they want the name of the Trust to be, identifies the Trustee and identifies the Beneficiary.  Simple.  

It does what you want it to do - hold property and keep information about the Beneficiaries out of the public view.  Does it stop the lender from calling the note due? NOPE.  But IF a lender is at the point of looking closely - they are less likely to question a Trust  ... over an LLC ... or over a person who is clearly not the Borrower.  BUT they all are close to unlikely between themselves.  (BUT it is always the responsibility of the Buyer to be on top of what is going on with the lenders.)