Echo vs Stack · Transactional Funding Hub

Echo vs Stack

I emailed this to you Paul, but I thought it could be helpful for all in here.

Had a quick question for you on the Echo v. The Stack. I know the basic difference is the echo the proceeds come directly from the seller and the stack the money is brought in. I have two questions:

1. What is the key determining factor in why would an investor use the Echo instead of the Stack and vice versa?

2. Specifically on the stack I have the following scenario:

A. Client has a home worth $220,000, which is also the purchase price.

B. He owes $178,000

C. Lender is only willing to lend the client $125,000, BUT the lender is open to 100 CLTV.

Question:

In this scenario, is it "possible" to run the stack play if the seller holds a $95,000 note (the difference between the purchase price and loan amount, plus closing costs), on this particular scenario?

Please advise on this.

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