Newby Senario, need help

I had this scenario fall in my lap and I am not sure what I can do. Any help is appreciated! I have a modivated seller who will accept a min of $120,000 on a property worth about $125,000. His mortgage is $77,000. He does not want to keep the mortgage in his name. So I think lease option is out of the question. What kind of creative financing can I use? Is there any way to make this profitable. Any help is appreciated. He is relocating in two weeks.

Ask the seller if he will sell for 100K in cash.At closing he gets 23 K. Do option contract. Sell the house to endbuyer for full price of 125K. The profit is 25K.

Ok where do I get the $100k cash. I only have hard money for 65% LTV which would be about $81K. Any other options that I can offer?

Seller wants full price. Seller is greedy, not motivated.

A seller who will only accept a 96% offer on his property is not motivated. Offer him the 81K as a cash offer than can close quickly. See what he says.

Thank you for all the responses. It’s not that he is not motivated it, is just the fact that he thinks the house is worth $165,000. He has it listed for $135,000 and it has been just sitting on the market for 2 months. His payments are pretty high for his supposed $77,000 loan at $960 a month.

Probably either a shorter term or a high interest rate. Remember, not everyone finances for 30 yrs.

The seller is in denial. If the property value were really $165K, the property should have sold in a few days at his $135K list price. I suspect that the seller’s neighbor sold a similar house in the neighborhood in 2005 for $165K, thereby establishing his opinion of value.

Don’t worry, after six months of inactivity the seller’s agent will probably convince the seller to lower the list price to a more realistic number.

Does the seller’s $960 monthly payment include taxes and insurance escrows? If so, then this monthly payment is not unreasonable for a $77K loan amount at 7% amortized over 15 years.

Did the seller originally have one of those power option ARMs with a 5 year fixed rate period that also included a minimum payment interest only feature ? If so, then if the seller just made the minimum payments during the first five years, then his minimum payment was interest only at the introductory rate for the ARM. During the first five years of minimum payments, the loan was negatively amortizing. At the end of the five year fixed rate period, the loan was recast as a fully amortizing loan over the remaining 25 years in the loan period, and the interest rate was reset to the prevailing rate. I would not be too surprised if the seller’s monthly payment doubled or nearly tripled once the ARM reset. I would also not be too surprised if his new loan balance was more than he paid for the house.