Interest accrued is around $225.

After the 24 months I secured financing and purchased.I retained all of the accrued appreciation during the 2 year rental period, plus all of the accrued rent credits.

Once escrow is opened, both buyer and seller have to authorize any changes in escrow instructions.Typical seller paid items:Deed preparation; existing mortgage and accrued interest; transfer taxes; commission; title insurance; repairs based on termite inspection report.Typical buyer paid items:Hazard insurance; document preparation fees; survey; mortgagee's title insurance; credit report; loan origination fee; prepaid mortgage interest; discount points; Recording fees (deed and mortgage); termite inspection.

My approach is always to present an am schedule reflecting the accrued interest to the seller during the balloon period, and the pay off number on the maturity date ( whch you should never reach on a fast flip of course).

This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale.

However with legal fees and accrued taxes and fines for two years, my total cost is about $13,000 for a house that may get $6-7,000 at auction.

It's part of it, and the money has accrued over time from rents so our tenants are essentially paying the bill for us, but would hate that large of an expense to come up and not be prepared for it.

Then they may come after you for the deficiency which will include the principle, accrued interest, force placed insurance, property taxes, legal fees, etc.

Could the owner carry the Second in this case, and I come in with the equity accrued?

That does not mean that new fees have not accrued nor does it mean the fees are all up to date.