Client Paid 17 yrs On A 30 yr Mortgage & Still Owe 80% - How?

[Michael Williams]

I have an extremely motivated client that saw my "CASH 4 HOUSES" sign on my car. He is ready to sell because he has two houses, which translates to 2 mortgages. He is willing to just have the loan paid off or payments taken over. He just wants the stress gone. I told him to get me the exact payoff for the house so we can know the exact number we are working with. Comps put the house at $93-98k. It only needs about $5k cosmetic work. HVAC is 5 years old. 

He says he bought the house 17 years ago for $100k and is paying $810 per month. I asked him how much he owes and he says around $78k. I said," $78k- Is this an Interest Only Loan"? He said "NO". Did you refi or get a second mortgage on the house? He said "NO". 

I told him to get an Amortization so we can see what's going on with this mortgage. He says it's an FHA loan and they are giving him the run around about the amortization. He says that the mortgage has changed hands to 3 banks over the years. Once I get the paperwork I can see what is going on. This guy is open to all creative options because he is stressed about this house and told me that he just wants it GONE.

Has anyone in this forum encountered an issue like this and what was the issue? I also would like to know how to write the contract up so that it reflects that he is open to all options. Do I need to just pick one strategy for the contract and work from there? If he owes the $79k for some reason, what is a good strategy for low equity in a "B"/"C" Neighborhood in Memphis?