$100,000 unpaid balance

[Sam Valme]

Hey BP team. I was browsing Zillow with my wife, going through some ugly homes. When I noticed a note on a foreclosure. 

This house is being sold for 19k. If a buyer was to purchase this house. Would they have to pay the "$100,000 unpaid balance"? That doesn't seem to make any sense to me. Either A. I'm misunderstanding what this is saying. or B. There has to be a way around paying this balance. The houses ARV is 40k. With an 100k balance the bank would never be able to move this house.

Thoughts?

[Zach Davis]

They will likely write off the unpaid balance, although they could go after the previous borrower for the remainder if they really wanted to, unless they filed chapter 7. Best to do the transaction through a title company, then you have the pros make sure there are no other liens on the property and that the title is free and clear. Then you have insurance that its all yours and no one else has a claim on it.