Need Help!!!

This transaction will take place in Georgia. Our Mother is going to be purchasing our home from us. We estimate the appraisal will come in around $90,000.00. However we owe between 1st and 2nd mortgage well over that amount. Our Mother is using some retirement savings to put down on her first home. My question is this can we sell the home to her on a conventional mortgage say for around $140,000.00 with her putting $56,000.00 down and her financing $84,000.00? Seems to be confusing to so many people I have asked here locally. Some say yes as long as she only finances the appraisal amount or less and others say no not unless it appraises for the full purchase price.

[HomeGuru]

Your scenario will not work because the mortgage lender will only lend on a loan to value up to the appraisal amount.
In other words, if the lender is making a 90% loan, the lender would require a 10% downpayment, thus the loan would be $81K with a $9K downpayment.

A new lender may close if the new loan would be enough to pay off the existing first and second mortgages but the lender would tell the Buyer why buy the property for $50K over appraised value. This is Georgia not Slicon Valley. Also it may be hard to get a 95% loan and can Mother afford the large monthly payments. I think she is getting ripped off.

Thanks for your reply. There is alot more to this then I went into, but trust me she is not getting ripped off. I would never do that to anyone let alone a family member. There is a wonderful outcome to this dilema that inevitably has her living with us in a new home where she has her own little house, her money out in order to get us out of this house pays for her new place and she has no house payment for the rest of her life.

Your comment of Loan to Value and your other response about appraisal and loan confused me. Are you saying that you cannot sell your home for more than appraisal if someone else is willing to pay what you still owe? I understand the part about the lender and the down payment and 95%. Maybe I am confusing myself here. Let me try this another way. Does the bank care what the home price is or do they more approve the loan based on what the home appraises for and what the financed amount is? Does it make any difference to them what the person is actually paying for the home as a whole? Sorry I am being such a pain or confused or maybe its just being blonde...