Mortgage Payoff Before Purchase

[Andrew Grams]

I have a Realtor colleague whose client has been approached by a developer that would like to buy her home. The amount offered appears to be about 70% of its worth. Fair enough, but she owes $80K on the property, and the developer has asked her to pay this off before they move forward with the purchase.

I can’t think of why this would be required, but I imagine the answer is going to be simple, hence the placement of this post. Any help would be appreciated in understanding this request. Thanks!