How do you protect yourself in the event the seller defaults on their mortgage?

i wouldn't mind cashing out but i can also wait for the buyer to pay me back.in case any trust deed buyers are reading this, the retail value of the lot is worth more than twice what is owed, lots of equity in case buyer defaults. the buyer is a well to do fellow who purchased the 8 acre lot for his 3 children who are in the navy. they plan on using a VA loan to cash me out in a couple months but they aren't obligated to do so. thanks!

The BP estimate I have found default to the property being one rental so thats what I would assume is making the big gap between the two estimates you have so far.

A friend advised that I sent a default notice via registered and regular mail.

They lent money on this project, they have a promissory note for repayment terms, and also a secured lien against the property in case of default, and then everyone understands everyone else's role in the deal.

Sometimes, the damage from a wholesaler's default on the contract is huge, such as losing their house to a foreclosure.The most ethical wholesalers NEVER put a property under contract if they intend to walk away from it when no buyer is found.

Checking the cash, the asset, the experience, and the financial character boxes is just a way to assess the risk, and determine you will likely not default. 

If you are relying on this month’s rent to pay this month’s mortgage, your first vacancy (or a major repair) will put you in mortgage default/foreclosure proceedings. 

I just learned that FHA dropped the loan because of the underwriting, and because of a couple of defaults I had earlier this year, which obviously reflected quite badly for my application.

If you are paying YOUR mortgage but then the seller isn't paying theirs, the seller's mortgage company can call the loan in default for nonpayment and start foreclosure proceedings.