OK, THIS IS THE DEAL, WHAT NEXT?

[nsu1997]

You asked how to minimize triggering the due on sale clause. That's one way to do it.

Plus the loan is still in the original borrower's name, therefore they technically still have a personally guaranteed note on the house which means they are taking all the risk. Looking at it from that perspective they just may insist on leaving their name on the insurance.

All in all, none of this really matters that much because I don't know of one instance of anyone ever getting a loan called due because of a sub2 transaction.