If I remember in basic accounting classes, if you buy back debt you owe at a lesser value than what it was issued at, that is considered a financial gain in the IRS' eyes and we know what the IRS does to financial gains.I'm not 100% sure, that's why I would think its worth a few hundred bucks to find out from a professional.

I paid my way through college with part-time employment, Georgia's state-funded scholarship, and have no debt.

Although we have less sub-prime debt, people are barely able to afford a house here and we're hearing doom and gloom in the news every single day.

I personally hate debt myself, and have almost payed off my home.

In lieu of those answers, he can not absolve you from the mortgage or the debt owed since he is not the mortgagee.

Sometimes you just have to write off a few bucks as bad debt and move on.

Plus, your expenses do not leave much room for debt financing. yes, I know you choose to pay all-cash, but you must have alternative strategies which would allow for debt financing in the event you needed it and if a building does not support that, you may want to look elsewhere.

That will certainly eliminate having to be in proximity to the closing agent, since I suspect that is what the OP's situation is.

None of them have any debt.

However, out-of-country seller (no debt) paid $300/month to a property manager, $100/month taxes, $205/year insurance, $350/month water, $120 month for electric/heat (laundry shed), $35/month trash (dumpster shared with 2 other MFHs), $105/month mowing, $20/month pest spraying, $50/month for cleaning of laundry room, in addition to any maintenance required.