With a regular, regulated lender neither one is legally possible and wouldn’t meet fed/state banking regulations.The current lender will either give you a discounted pay off, or they won’t.....that is your only solution to refi.The deferred principle makes this sound like a loan Modification done by a major lender.....not sure what a “balloon payoff penalty” is, sounds you are mixing up terminologies.

But if you want to grow your business building a team of qualified subs who can work to your standards and within your budget is a vital step.

Does anyone know if that is a vital area?

The listing says that the roof needs repair so I'm including $20,000 to fix it up ($10k for the roof, $10k for other repairs).Without any modifications, this is not a good deal (Cash Flow: -272/mo, Cash-on-cash return: -2%)! 

Those people have been in limbo for a long time with mortgage modification.  

@Dana Whicker from what I discovered my mom filed for a modification after the dismissal..

Starting to network and building a team now will be vitally important to find those off market distressed deals. 

They’ve already signed the contract and are asking for a modification, after the fact.  

Build your team, boots on the ground are vitally important. 

I'm sure most CC&Rs refer to a standard "subject to approval by the Committee "on almost any modification you wish to make on the lot.