Updated about 10 years ago on . Most recent reply
Help With An EXISTING LOAN!
What are my options if I had a home under contract that is under market value but seller had an existing mortgage loan?
For example: If the house is worth $100,000 and the owner currently owes $60,000 on it and I buy it for $25,000. What happens with the remaining amount that is left owed on the loan?
If there is a way I would like to buy the home, flip or assign the contract to a buyer for profit and the loan balance be paid to release the seller from the home totally.
Most Popular Reply
Sounds like you're looking to do a short sale. Requires bank approval. Unless the lender is paid off or agrees to take less than the amount owed, you're not going to get clear title and you have nothing to sell to a prospective buyer. There is probably also a due on sale clause in the existing mortgage. That means they can call the loan due as soon as title is transferred to another party. Why would someone sell you a house worth $100k if they only owe $60k for $25k? Something is fishy. Even if they sold it for $90k to someone else, they would still walk away with the same cash in their pocket. Maybe they are trying to scam you. Be careful...