While his loan isn't assumable, you could structure a deal where you take over payments while giving him equity in a seller-financed second note.

I plan to wrap it as an exit strategy,  but assuming worst case scenario, If I were unable to make payments and foreclose, the seller takes the property but would my credit or record be okay?

Assumable MortgagesAn assumable mortgage allows you to take over the seller’s existing loan — including its lower mortgage rate.

I assume you're going to sell it to a developer, so sell it as is and let them deal with it. 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

I assume not.

@Walter PinedaEven if someone give you a referral, what meets their expectations, may not meet yours.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

Using simple numbers, assume I want to purchase a $100,000 property using crypto as collateral:- I pay the closing costs with cash- I put down 10% down payment with cash ($10,000) - I utilize a crypto mortgage for the remaining 90% ($90,000) This way, I still keep my crypto and I have a property, both of which may accrue in value over the long-term.

My friend benefited from assuming my 2.5% rate.

The agent also stated that because the seller is behind, the loan cannot be assumed.Questions for the Group:Is it true that a VA loan cannot be assumed if the seller is behind on payments?