What if the Seller doesn't use the funds from the sale to pay Mtg

[Will Pham]

Sorry if this is a dumb question but I'm trying to see the implications of a property that has an existing mortgage on it. 

So hypothetically if there was a property that had the following attributes:

ARV = $500,000
70% "rule" = $150,000
Repairs = $25,000
Wholesale Fee = $10,000
MOA = $315,000 

I know there are other variables to consider like Fixed Costs, etc., but my main question is if an existing mortgage affects the numbers at all. 

Also, my other question is what if there's an existing mortgage on the property and what happens if the seller doesn't use the funds to pay that mortgage off?   Can the wholesaler or eventual buyer be on the hook for that mortgage?

Thanks for any help!