there are certainly ways to protect yourself in this situation.State of CA came out with a great vehicle its called a All inclusive Deed of Trust you can google them and see how they read and protect your position in the transaction.short of that you could hire a specialty servicing company that you pay the master payment to ( oops  Primary Payment )  and they cut the check to the sellers lender. there is no question that there has been many and investor get royally screwed by folks collecting the payment from you not paying on their loan going for as long as they can then just walk away. those mainly by folks who bought sub too and sold to you on a wrap and the mortgage is not in their name..

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.

Possession of the Property and Inclusions will be delivered to Buyer on Possession Date at Possession Time, subject to the Leases as set forth in § 10.6.1.1. and, if applicable, any Post-Closing Occupancy Agreement.  

This isn't inclusive but should give you a good start.

This isn't inclusive but should give you a good start.