Explaining why I came to those numbers is beyond the scope of this post, so just accept that as given. 

Unsure if I'll win, however my civil cross complaint means she has some explaining to do. 

Local banks have in-house approvals for loans, so often you can explain your case and get more leniency than you would at a regional or national bank.

Make sure your sellers sign a memorandum explaining the risks involved in the transaction, and they're aware of the repercussions of informing the lender of the nature of the transaction. 

@Cherise Wright Start by calling local RE attorneys in your area, and while you're at it, sit down, pay for an hour of their time, explain your intent, and then have them explain the legalities of wholesaling in your area!

@Meagan Inman I would call Mom and explain the dilemma especially the lease assignment.  

Also, can someone explain why sellers are only paying buyer brokers .7% wherever this deal is going down?

My broker is suggesting this is a bad option because of two reasons:1) Lots of money for closing costs (again) and2) The interest rate is going to typically be higher on the new refinanced loan.Can somebody explain to me what I am overlooking?

My PM company and I explained she would be on the hook for any missed rent until we got a new person in (she had a year lease).

If they're willing to sell Sub2, they're generally out of other options (not enough equity to sell cash, not nice enough to sell retail etc)If the seller is 6+ months behind on his mortgage I think you could get a better deal by bringing him back to reality and better explaining the seriousness of his situation. i.e. he's about to lose the house!