Reverse 1031 exchange and mortgages

[Ryan F.]

I am doing a reverse 1031 exchange. I have already purchased the replacement property, and it is in the name of the qualified intermediary. Purchase price was 105k. It has a private mortgage on it of 100k. Mortgage is official, and was provided by a family member. The relinquished property has no mortgage and is being sold for 85k. Basis is about 15k. My question is can I keep the 85k that I will net from the sale in the bank? Or will I have to pay down the loan on the replacement property?