Acquisition Troubleshooting For Sale by Owner Properties
Hi BP Family, what happens to the amount a Seller owes on his mortgage?
a) Buyer must pay off the loan before acquiring the property?
b) Bank allows Buyer to take over the mortgage?
For example:
After repairs Value = $150,000
Total Seller Mortgage Amount = $100,000
Seller Equity = $60,000
Amount Seller Owes the Bank = $40,000 <--- What happens to this amount?
Wholesaler Purchase Price = $70,000
Rehabber Purchase Price = $80,000
Repairs Cost = $20,000