Some precautions to consider:- Make sure the person who is the borrower of the underlying bank mortgage fully understands the implications  of a wrap, as well as the buyer- Consider a 5 or 10yr balloon note (vs. 30yr fixed) if you are worried that the seller may have 2nd thoughts down the road- Buyers should need to bring a significant down payment to the deal so that they have skin in the game- If your state allows a Deed of Trust for the wrap note, I suggest using that document (vs. a Mortgage) as it will put a lien on the house allow the Seller to pursue a non-judicial foreclosure if the buyer does not perform.- The home insurance after the sale (the new owner is the "insured") should retain the name of the previous owner(payor of the bank note) on the insurance as "additional insured" so as to not set off any alarms with the bank.- Use a 3rd party loan servicing company to collect all mortgage and escrow payments and make all appropriate payments to the bank lender as well as seller finance lender.   

Sounds like they probably accepted the other offer as they’d likely forward the signed acceptance to the buyer.

Buyers will find it very difficult to finance. 

Easiest case is to find the best buyer for the highest and best use.

Is the Sale Price the number I would pitch to an end buyer and minus the repair costs from that number?

Is the Sale Price the number I would pitch to an end buyer and minus the repair costs from that number?

The buyer should expect to have to come up with extra cash to make up the difference, above and beyond the contract price.....which means you adjust your contract price accordingly, before submitting.If the house is underwater on just the first, the second should expect about 5%.

But you want to line up your buyers and know what they want and how to find what they want.

I have helped many buyers with student loans qualify for a much higher home price using this little known strategy.Hope that helps? 

Hence, the majority of buyers will, most likely, be investors.