The owner financed with 10% down and carried the balance.

Here are the numbers: Current loan balance is $150k @ 4.5%Estimated cost of the garage is $25k to $30kARV is $250k to $300KAny advice offered will be much appreciated!

Here's a summary of the economics.They purchased the property for $280,000 in 2004.The loan balance is about $178k.Monthly principal and interest payment is about $1,265 with $709 currently going to interestProperty taxes are $4,116 annually and insurance is $1,000.Currently the house is vacant for the sale so there's no rental income.Therefore, the monthly burn is -$1,135 (ouch).For the sale:Property was originally listed at $335k and they received 0 offers at that price. 

Currently there's about $345k left on the loan balance.

The current value of the home is $140k with about $92k balance on the note.

If you can't withdraw all the funds maybe an option is to withdraw enough for a down payment on a property and use the balance that you can't withdraw as the required reserves needed for the bank underwriter to approve your loan.

Can anyone tell me anything about the Note Servicing Center in Chowchilla or Unified mortgage loan serving or VIP Trust Deed?

Just to make it simpler to understand.So you took out a personal loan of $10k and you loan that to the business for the escrow at closingOn your balance sheet you would haveDebit Escrow Account $10KCredit Due to Rob $10KAs for the interest, the business will pay the interest exp payable to Rob (since you are the one who will actually pay the interest).

The son doesn't want to continue making the mortgage payments and is open to selling subject to the mortgage balance and wants $5K to pay some bills.

small balance loans are difficult for lenders ..