If the owner thinks the balance is around $180k, it is likely more.

At $140k with $10k down, the balance is $130k at 5% interest for just over 40 years.

They balance on their loan to the seller is over $200K, six years into a 40 year mortgage.

The IRS lien is generally NOT a problem when there is no equity in the property (mtg balance verses auction price).

I could use some URLs / docs that give a balanced picture of why this works for a seller.tnx curt

Guessing at 6% their payment is approximately 333/mo.Using these numbers they have a balance of roughly $15,600 remaining on the mortgage.

These loans are NOT sold off as MBS, but are instead held on the balance sheet of the originating bank.I am not a banker, so my explanation may not be picture perfect, but that is a rough idea of how that world operates.As @Chris Martin mentions, the GSE underwriting looks at ALL mortgages you are involved with of any significance, so you could potentially choose to do a couple more Fannie deals before going ahead with the portfolio route, but you can't do it the other way around.  

Originally posted by @Betty Carson:how do a move a 401k account to a self directed ira so I could purchase a home Hey Betty,If you mean home as in a primary residence for yourself, the best option for using retirement funds is to leave them in your 401k and take advantage of the loan provision (most plans have one), You can take up to $50k or 50% of your vested balance as a personal loan, usually at prime +1-2% for a 5 year term, and you can use those funds for whatever you like, including purchasing a primary residence.

But to answer your question, the only way you can access funds in your IRA and use them for a down-payment with conventional mortgage is by rolling over your 401k funds into self directed Solo 401k Plan, which has a loan provision allowing you to access up to $50K or 50% of your account balance tax free and penalty free, which in turn can be used as a down-payment or any other use you wish.

As a lender, I want my borrowers to have 10% or more skin in the game and I only lend money to investors who can show they have done at least 3 or more deals.5) Lastly, have organized financial records (Income Statement and Balance Sheet).