Wholesaling with mortgage

Iam a wholesaler and was contacted by an owner who has a home that he owes 70k on. The house has damage to it, and he has moved out because of it. This house has an ARV of 180k. But it would take about 10k to get there. I have a buyer that wants to pay 90k for it. How would I do this deal? Would I have to do a “subject to mortage”? Ive never done one like this. Or would the homeowner have to pay the bank at closing to pay off the mortgage. The homeowner said he will pay the bank off, and doesnt expect to pocket any money, he is even willing to loose money in order to walk away with his credit. Any help would be apprecated.


Well first is a contract for $70k, open escrow and deposit earnest money! (A-B)

Contract with end buyer C for $90k! Use transactional funding to close A-B then B-C!

Ask buyer C to obtain a 203k loan for purchase and rehab up to $35k in repairs / rehab!

Or buyer uses Hard Money Lender with roughly 25% down to purchase and close deal!!!

Investor (You) net $17k roughly clear!

Everyone is happy!!!