Seller Financing is Confusing Me..

[Todd C.]

I'm working on a situation where I physically cannot wholesale this deal at a profit, so I'm actively searching for other avenues...

APV: $125,000

Outstanding Mortgage: $100,000 (was a $200,000 loan)

Is there a way I can structure a deal with seller financing so the buyer I find would assume the remaining mortgage and pay a down payment of $10,000 ($5K to seller, $5K to me)? 

Everything I've read suggests that the buyer must pay off the mortgage upfront and then can implement a seller financing deal for the remainder of the purchase (if there is any). 

Apologies in advance if this has been covered - I haven't been able to find a direct answer.

[James Wise]

 The above suggestion is clearly brokering a RE transaction.  Are you a licensed salesperson?

Above issue aside, this would put the seller in a horrible position. Several things can happen to the seller

What if the buyer defaults? Bank forcloses.

Hurts sellers credit.

Bank forecloses because of due on sale clause. Hurts sellers credit.

Seller tries to buy a new house but cannot qualify for a loan as they have an outstanding mortgage in their name.