Considerations when buying property FSBO with mortgages

[Timothy A.]

Hello everyone!

I could use some help on my first FSBO opportunity. I was contacted by a seller who has a property in southern california who wants to get rid of the house quick. It's originally a 4bed/2ba but at some point had the garage converted into a studio space with it's own address. I'm not sure if this was a permitted change, but I assume so if it has it's own address. Both are currently used as rentals.

Comps are around the $130-140k range. The house as a 1st mortgage of $65k and 2nd mortgage of $15k to the previous owner. His initial asking price is $50k to get rid of the property. I'm not sure if he means he wants $50k on top of the money needed to close out the other mortgages, or if he just wants $50k total to close the deal. I'll ask him tomorrow during my walkthrough of the property. 

As it's my first FSBO deal, I'm not sure what steps are needed to close given the 2 mortgages in place. Do I need to pay out these mortgages myself upon closing? Do I need to contact each mortgager and have them inside the initial contract? Or is the seller responsible for this? Thanks for the guidance!