I was offered a deal in which the property was appraised a few months ago by a Suntrust appointed appraiser $500k. The owner is about to file chapter 11 and needs to net $299k.

I ordered an appraisal that and it put the property at $500k without the former appraisal ever being mentioned. So yesterday submitted my LOI and the owner's agent told me that equity disbursement was allowed but I have never heard of equity disbursement in real estate.

Can anyone tell me what it is, how it works (exactly)and how do I structure it? Do I need a land trust or something? How does this work?