As you pay down principal on the fixed portion your available credit line grows again. 

As long as they get their principal + points/interest back then it shouldn't matter if it is from a sale or refi.

Buyer Pays all closing costs; (Give me a call or text for further details)Seller Walks away with: (Remaining Equity)OPTION 2: Subject to - Taking Over Owners Existing Loan With Owner Finance of 3 yearsSubject to - Taking Over Owners Existing LoanPurchase Price: $150,000.00Terms for the remaining Balance: Bring any late payments current (if any), in addition buyer takes over seller mortgage and monthly payments.Seller Finance of 3 years (Financing Half of Sellers Equity)Down Payment: Half of Seller’s equityTerms for the Seller Finance remaining Balance: Seller to carry back balance of Remaining Half of Seller’s equity @ 5% APR with Monthly Interest and Principal Payments with a 3-year balloon.

In most cases there is a portion of the monthly payments that are applied to the principal/down payment, the rest of which is paid at a pre-determined closing date. 

The best seller financing you can create is a principal mortgage, that is a mortgage without interest that is fully assumable without qualification. 

The lower the principal of the loan, the lower the net profits to the bank as a result of interest. 

Hopefully someone else can jump in on that point.An example of counting properties from Fannie Mae's site:"The borrower is purchasing a second home and is personally obligated on his or her principal residence mortgage.

I was thinking to assume conditioned on a workout consisting of a write down of the principal, which based on your input, would ultimately be a short sale.

If so you can offer more - when asking for owner assisted financing all ask for principal only mortgage that is as you know is a mortgage without interest, make sure it is fully assumable without qualification with no balloon payments.Now that you have a base line price that you may be willing to pay - what you should do is to look at other properties in the immediate neighbor that are FISBO's or listed and than make a 100 post card mailing to all neighbors - drop off flyers in the neighborhood - "WANTED - Real estate - any condition - houses or commercial - family business - no commission or settlement costs - we are not agents - please call if you have real estate to sell."

He is one of the principal shareholders at Harrell, Stoebner & Russell, PC in Temple.