Wholesaling With A Mortgage

[Ryshawn Cousar]

Hello BP!! I hope all is well. I am in the process of dealing with a homeowner in a distressed home. Her home is valued at 160 + after repairs and she owes 96k on the mortgage.

She wants to know how the transition of the title or deed works. She assumed she would have to refinance. But I wasn’t sure how to answer.

What are her options BP? Refinance(if so, explain in details that process please)? Short Sale? Or What?

Thanks in Advance 

[Tom S.]

@Ryshawn Cousar  If you have a buyer with cash, the cash would simply pay off the existing mortgage.  So if the purchase price is $110k, for example, $96k would pay off the mortgage and the seller would get $14k (excluding closing costs, your fee, etc). The title company would handle all this.

The key is how much work is needed to get it to that $160k value, and then you work backwards to arrive at your offer price.  There are many posts on BP on how to calculate that. You need to pinpoint the repair estimates and also pinpoint the After Repair Value.

Good luck and welcome to BP!