answer:Sounds like the seller chips in on the closing costs. Normally, the buyer is responsible for closing costs, I think, unless there is some agreement and the seller helps out. Who owns the house? The bank? Is it an approved short sale? I don’t think you need to worry about any of that. You just need to be sure the title is free and clear, and that you can afford to pay for the house and associated closing costs. Of course, you want to reduce your costs as much as possible. Do not worry about whether your offer covers the amount owed on the mortgage. That’s not your concern. Offer what you think is fair, and make it an offer that is serious enough for them to consider. The owner may be willing to make up whatever the difference is if your offer does not cover what is owed on the mortgage. Your offer may be the best they can get. They may decide they can do better than your offer, and give you a counter offer. You can call their bluff, or meet their counter offer. In this market, if you are covering the mortgage, I’d think they would be happy to walk away not having to have to pay for the privilege of walking away. But you may be making a very generous offer, and they might snap it up.