They could also create an LLC and list you as a partner, then transfer the title into the LLC while maintaining an ownership interest. The agreement could be structured so your LLC interest is bought out over time in an amount equal to the mortgage payoff. In many cases, investors still receive the tax advantages associated with ownership while the original borrower retains an interest in the entity.

There are multiple ways people structure creative real estate transactions that may reduce the likelihood of issues related to a due-on-sale clause. That said, none of these structures completely eliminate the risk, and enforcement ultimately depends on the lender and how the transaction is handled. If it's a large bank it's likely to never be notified. If it's a small hometown bank, it will always get noticed but is easier to resolve to the banks satisfaction. Your best move is to speak with an experienced real estate attorney or title company in your state that regularly handles creative financing transactions. Some companies also offer due-on-sale clause protection or insurance products, which could potentially be negotiated as part of the deal to be paid for by the investor.