Another way is to add the buyer as a lien holder behind the bank.

If he sells the note it will be at a discount, but the discount may not be as much as the tax due on a cash sale and he will be taxed on the balance of pricipal received after the discount, on a per centage basis paid off, if any.I have done deals where the person who owns a note (note holder) used it for a down payment on other properties.

Would I get a free home out of the deal or would I be responsible for paying the lien holder of the mobile home?

Then you have, the BPO, Appraisal, Mortgage servicing agent, The Investor holding the note, The Insurance Company, insuring the mortgage, maybe 2nd lien holder, finally the underwriter to make sure the package is complete and everyone involved is on the same page and approves.

When I was doing MHs (owner financed sales), I would put the title in the buyer's name with my company as the lien-holder.

My question is, what is my next-best move in working out something with the mortgage holder?

Learn how to evaluate values, both current and exit values, as well as how to evaluate rehab expenses (for flip purchases) and/or cash flow (real cash flow - for buy and holders).

Hey -I know you are also from India. do you know the rule "KISS " --Keep it simple stupid-- not joking --if it is a first deal for you --let it go -do not get too complicated --and waste time--unless there is lot of equity and have good attorney to help you--IF you have cash --BUY the second and third liens at discount --OR if you say first is only 1/10 of 2nd and 3rd combine -then approach first lien holder and pay full price-- stop the auction -- gets more complicated --oops --sorry -- champak

OK, new buy-and-holders, here's what I've found out on investment property limits for largest US lenders.

Is this how it owrks, that all JUNIOR lien holders get completely wiped out and you own a property free and clear for 5k?