Please help me help my friend - buyer wants to assume his loan

[Shane Woods]

Hi Y'all,

Here's the story, and my thoughts. Please help and correct any misunderstandings I have...

Friend bought a house FHA for $127K about 6 months ago. $5500 total out of pocket at closing.

A buyer (former owner actually, but this doesn't matter) has offered to "cut him a check" for some agreed upon amount, and take over his payments. He looked at his paperwork, and it says the loan is assumable as long as the bank verifies FHA qualifications.

IF he can do this, what should he ask for in the check? and what is the closing process to get his name off the mortgage/deed?

I was thinking he should ask for everything he put down out of pocket, plus all principal paid so far, plus a "fee" for his trouble, to include storage/moving expenses, dealing with the BS, etc.

Sounds like $10K might be a good round number? if this is even possible and a good idea?

Oh, and he WILL NOT be letting them do a sub-to if that's the only option. He'll only consider selling IF his name and liability come off the mortgage.

Thanks in advance :)