Using Wrap to buy - What if seller defaults?

[Ben Rodrigue]

Hey All! 

New member here! I searched the forums and couldn't find an answer to this question. I appreciate any advice in advance. 

I'm closing on a purchase this week with the goal of flipping the property in the next 4 months. The seller agreed to owner finance by wrapping the current loan. I have had my attorney review the contracts and besides triggering the "due on sale" clause my only other exposure is the seller not paying the current mortgage that we are wrapping around. I'm concerned that the seller could wake up one day and decide to stop paying their mortgage. The promissory note does state that the seller is obligated to pay the existing mortgage according the it's terms but what happens to my position and what is my recourse if they decide to pocket my payments, not pay on their note, and the bank forecloses or calls the note due?

Thanks!