Paying debt owed on a purchased property
Hello Guys,
I am a newbie Wholesale investor!
How do you settle the debts owed on a property you purchased from a motivated seller who is behind on his mortgage payments and is facing foreclosure or bankruptcy ?
Say for instance, the property's market value (As-Is condition) is at $200,000 and the owner has agreed to sell the property for $135,000, while the After Repair Value is supposed to be $250,000, so this is going to be a good spread.
(A) However, there is still a high mortgage on the property, so who settles this mortgage? and
(B) How do you know when to walk away from a Wholesale deal if the mortgage is the issue?