trying to understand buying preforclosure and buying home with equity

[David Daniels]

Hey bp

just a quick question that been floating in my mind for a while, I probably already know the answer but I like to overthink things for some reason. Ok when you buy a pre-foreclosure or say a home with 40% equity....Are you just paying for the note on the property, so that would be your discounted price right?. And what else additional cost are there?

for example, if I found a house with a fmv of a 150k with 40% equity. Am I getting the house for 90K? because all I have to do is pay off the bank right?

now lets say if I need to put in 40 k repair into it, would I need to apply the 70% formula on the fmv minus repair. which is 65k for my max offer. if that is so, what about the 90k loan? would I need to try negotiate with the seller to come up with a difference and have him pay off the remainder of the loan at 25K.

(I would use a subject to existing financing deal for this example, but I still need to know how things work expand my brain please)

Thank you

-David D