How does Primary Residence-Land Trust-LLC formula work?

[Victoria]

Hello all,
I would like to get some opinions and/or information on my issue. I have a home that I've lived in for almost a year. My company is trasferring me to a different state, but I would like to keep my home and rent it out while I'm gone. I plan on returning to this property in a couple of years. I understand that a lot can happen while I'm away and would like to protect myself by forming an LLC. I also understand that it creates an issue with the lender. Can someone please explain how does the Primary Residence-Land Trust-LLC formula works? I've seen some info on this site about it, but didn't completely understand the scenario.
Thanks a lot!

[John Hyre]

When you transfer property that has a bank loan on it, the bank can call the loan due.  This is the infamous "due on sale" clause.  As a pracical matter, the banks rarely invoke the DoS clause, because they run the risk of converting a paying customer into a foreclosure.  A land trust is used to hide the breach of the DoS.  

My problem:  Hiding things from the bank looks bad (at least) and constitutes loan fraud (at worst).  Either way, I don't like it.  I prefer to be open - and tell the bank what I'm doing.  Very few will care, though there is a risk of the bank getting upset and perhaps forcing a refi when transfer title, particularly if Countrywide is involved.  That's unlikely and minor when compared with the risks of using a land trust to conceal a DoS breach.  Given that the loan is in your name & therefore public record (at the recorders office), there are no significant privacy benefits to a LT.

As such, I would probably just transfer the property to an LLC.....unless you are in an absurd state like CA, which charges $800 per year/per LLC.  In my opinion, the asset protection provided by an LLC is not worth $800/year for a single leveraged property.  The other 49 states are much more rational when it comes to LLC fees.

John Hyre