1031, 2nd Lien, and Seller Carrying the 1st Mortgage

[Andrew R.]

Looking for some feedback on a 1031 exchange I'm currently doing.  I just sold my condo and the capital gains are sitting with a qualified intermediary.  The property I would like to buy is under contract and has a mortgage of about 50k with I would like the seller to hold this note (which he's agreed to) however, it seems this would be difficult to do according to the title company.  They've suggested instead, I could file for a 2nd lien on the property so that I have some security when it gets paid off or sold.  Doing this the original mortgage and title would stay in the seller's name.  Just to shed some background this is in the state of TX and the seller is a family member. 

My first question is, is this doable with a 1031 exchange and if so has anyone else in the BP community done this when the seller is willing to carry the 1st note and how did it work out for you? 

Any feedback would be much appreciated.