Can anyone help with this situational wholesale problem?

[Javon Rice]

If a house is bought by a family for $100,000 and then after two years they owe $95,000 but the property is appraised at $160,000, if an wholesaler offers them $115,000 and they accept will that cover the mortgage and make it free and clear for the buyer to sell for around $160,000? I would also sell to the buyer for $125,000 for a profit of 10k for me

I'm a newbie so it might be a dumb question.