BRRRR question about the seller

[Account Closed]

Say you find a distressed home with a owner willing to sell to you. The mortgage on the house is $100k, the owner owes $80k, and they take your offer of $50k. What happens to the $30k left on the mortgage?? This is all hypothetical, by the way. Thanks for your time!!!

[Andrew Postell]

@Account Closed thanks for posting.  Always great to hear from a fellow Texan.  The post is sort of correct, you would need to structure this differently....but it isn't impossible....but maybe it is.  Research "subject to" transactions.  That's where you can acquire a property with the pre-existing mortgage in place....essentially you buy the property "subject to" the lien holding it's position.  An interesting concept, not very common, but certainly a good technique to know about.  Maybe it will help here.  Good luck!