Sub2, delinquent amount included in Loan Balance?

[Jk Cho]

Hi I'm a newbie investor and I have a basic question about sub2 transaction.

My seller said her current mortgage balance is about 480,000. And according to the NOD, the delinquent amount (i guess this is a foreclosure cure cost) was about 20,000. Is this 20,000 included in the current loan balance or is it separate? My guess is 480,000 doesn't include 20,000.

600,000 (estimated market value)

-480,000 (current outstanding loan balance)

-20,000 (delinquent amount)

= 100,000 (this should be room that would cover my seller's equity, repairs, my equity, holding & closing costs, and others)

is my understanding correct? Please give me your thoughts and any advice on this. Thanks :)