I am a Wholesaler and I came across this lead, he’s on a Pre-Foreclosure list, his house is under water, it’s worth about $700k but he owes about $975k because he took a Reverse Mortgage on the property, I know that with the Reverse Mortgage, if the balance is more than what the property is worth, he doesn’t have to pay the outstanding balance.

In many cities, the water bill is tied to the property, so there could have been pre-existing outstanding bill prior to the tenant moving in.

If people have trouble getting money from the start how does someone pay the regular 3%, 3.5%, 5%, 20% downpayment to get a regular house loan.Those are outstanding terms for hard money.For investment properties, you're looking at 25-30% down for a conventional loan.

QUESTION: will banks do deals to get it off their books if the offer is less than the outstanding loan amount, or will they NOT because the retail value is significantly above the loan amt and they will wait to see if they can make money on it instead?

You need an attorney involved to do a title search and make sure there are no outstanding liens and that the legal description is the right property.

If you pay this personally, YOU become the hero and make an outstanding impression to the board and fellow members.

Looks like also with this kind of sale the real estate could be connected with outstanding debt owed by deceased owner.

If she still owes a mortgage, then you have to get her to obtain a payoff figure (banks might charge a fee for that) or at least the outstanding loan balance.

What if there is an outstanding mortgage balance 3x the value?  

Can he give me a land contract if he has an outstanding mortage?