Come to find out it was a seller financing deal and a damn good one.

Damn...

The most important part of the process, generally, is doing a title search beforehand to discover if there are any liens, outstanding violations, or other encumbrances on the property (unpaid taxes, mechanic's liens, open water/sewer bills, etc.). 

The deal is still a winner from a cash flow and cash on cash return, but damn.  

If that comes as 120k, you are eligible for 80% LTV, or the outstanding loan amount, whichever is lower - so 90k in this case.I would love to hear from someone who has actually done it, or find a conventional lender that would do a rate and term refi. 

@Miguel Bautista I’m a Nj native, and am seeking to leave here to invest elsewhere. do not move here unless you want to pay 5 digit taxes. too damn expensive for anything

Upon the sale of the property, any outstanding liabilities are paid off, the investor gets his money back, and then the profits from the capital gains are split on an agreed upon percentage.  

Take a look at the past results on the foreclosure auctions on that same calender and you'll see the majority go back to the plaintiff and the majority of the rest go for damn near market rate.

Seemingly an outstanding purchase. 

Does the bank sale the property for the outstanding balance or for FMV?