Halyard, the trust carve-out is narrower than that. Garn-St Germain lists transfers a lender can't accelerate on for certain residential loans, and the trust item generally contemplates a transfer where the borrower stays a beneficiary and the transfer doesn't shift rights of occupancy. Assigning the beneficial interest to a buyer is the exact fact pattern that argues the exception doesn't apply, and how a court reads that turns on the statute and the loan documents, so it's a question for counsel licensed where the property sits. Structuring specifically so the lender doesn't notice is also a different problem from structuring within an exception.
On your two attorneys: a wrap isn't illegal, and a due-on-sale clause is a right the lender may exercise. The refusal usually comes from one of these. Some states regulate residential seller financing hard enough that the drafting itself carries risk, including state licensing triggers for repeat seller-financers and state-level ability-to-repay rules that vary by state. Some firms won't sign a document whose whole economics depend on a third party not calling a loan. And some won't take the malpractice exposure of a buyer who later says nobody told them acceleration was possible.
The documents that actually carry weight in a wrap: the wrap note and a recorded security instrument in your favor, title insurance with the underlying lien shown and a payoff you have independently verified, and an escrow or servicing arrangement where your payment goes to a third party who pays the underlying loan and gives both sides a ledger. You also want a performance deed of trust or similar backstop, drafted for your state, that lets you cure if the seller misses payments.
One more risk that tends to go undiscussed at closing is the seller's own situation. Their creditors, a divorce or a bankruptcy can put a lien or a stay on title you don't control.
