Question about buying

[Nicholas Ernewein]

So this isn't actually me buying the property but a friend of mine, is signing the closing paper tomorrow for a house for 200k, in the Buffalo, NY area. So I he has a question, and I didn't know so I told him I would ask around. Here is the scenario...

The seller has a couple other complexes he found out. He also discovered this lady is going through a divorce. She offered to cover 2k of the 15k closing costs, my friend had the property checked to see how much it was going to be to repair this house which ended up coming to 30k. The seller, and him both agreed on lowering the cost of the of the house 15k ( 183k now ). My friend was hyped because it would be a lower cost on his mortgage, he originally was going to pay the rest of the closing costs out of pocket.

However this is where I get lost, I don't know if the following is common or not. The seller said she wanted to keep the mortgage the same, and pay my friend 15k and closing, and have the 15k go towards the closing cost, so after that my friend would actually see around $800.00 however the mortgage would stay at 198,000 ....