I have a motivated seller who's property is in preforeclosure and would like 230k on a house with an ARV of 260k. I explained that that was unreasonable and that as a cash buyer there would have to be a considerable discount or it would make business sense. I told him I'd get him a cash offer and may be able to structure a deal that would give him a higher walk away if he was game.

The place is about 20k behind with a pay off of 160k . It is in pretty good condition, needing to have the floors and bathroom updated only. There was recently a new HVAC installed.

I have formulated my cash offer but would like to also present another option. Can anyone suggest a strategy? I am thinking subject to the existing mortgage but do not fully understand how that is done.

Any advice is appreciated.