You really should seek guidance and counsel, in-person, with a local financial and/or legal advisor for this scenario.
However, the act to which you referred, I believe, prohibits the due-on-sale clause from being exercised by a lender when the transfer is into an inter vivos trust or to a spouse or child of the owner who then becomes an owner of the property (note the words "an owner" would imply that the original borrower is still on title). Again, you should check with the lender on this issue.
Similarly, you should check with the insurance carrier regarding the transfer. Clearly, casualty and liability insurance is something you do not want to jeopardize or leave to chance.
