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?
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
if a seller owes $100,000 on his mortgage the only equity he has is the amount he sells property above $100,000
Thanks Steven for the fast reply. How are these transactions negotiated with sellers?
Do buyers always offer more than the mortgaged amount so sellers are able to leave with cash in their pocket?
Is it ever possible to offer less than the mortgaged amount or a price that frees the seller but he leaves with no cash?