Hello! My first post, need help with a subject-to wholesale AKA mortgage assignment deal

[Matthew Rose]

Aloha from Honolulu! Excited to finally be posting on this forum....My partners and I recently got a property under contract, structuring as a sub-to wholesale, which would be first for us. Already found a buyer (would be owner-occupant), but now all of a sudden the seller has announced they will be filing for Ch 7 bankruptcy! :cry: We knew that pmts. on property would be behind starting next month, goal was to get buyer in before then. Now what? Of course we will be honest with the buyer, just wondering if this is even still a deal. Not very knowledgeable about what can happen in a situation like this. House doesn't have a ton of equity, if any. How much risk is there of the house getting seized or foreclosed on, even if new buyer is good on making pmts.? Appreciate any advise, opinions, or comments. I don't mind feedback whether positive or negative, still fairly new at this.