Wholesaling and Original Mortgage

[Edward Brassington]

Pardon me if this seems to be a silly question. However, I am new to wholesaling and I am trying to understand it as best as I can before I begin marketing for motivated sellers and buyers. My question is what happens to the seller's original mortgage after it is wholesaled to the buyer? I understand that the buyer gets a lower price, but what happens to the original mortgage to the original lender? (if it is not a subject to deal of course). I've been looking everywhere and can't seem to find the answer to this. Thank you in advance!!

[Simon Campbell]

If the purchase price is equal to or greater than the mortgage balance, then it is paid in full at closing in order to release the property.

If the purchase price is less than the mortgage balance then you enter into a short sale scenario. You now will have to go through the seller who has to go to the lender and get bank approval. This now becomes a long drawn out process so be patient and keep your end buyer in the loop.