Keep in mind that a lot of seller financed properties have mortgages and they will want to do whats called a wraparound mortgage. What that means to you is this. Your new house payment will typically be made to the seller, and they will send a portion of your payment to the existing lienholder and keep whatever's left. Several caveats for this though.
1. There are due on sale clause on most mortgages. Typically if an owner sells a property without paying the existing lien off and finances it themselves without lender consent, which they all do. They will have the option of declaring the entire amount owed, due and payable immediately. I will also tell you in 26 years I have never had anybody come to me and say the lender is invoking an acceleration of the sums due because the original borrower sold the house and financed it. Keep in mind lenders know this happens all the time, and as long as the property is taking care of, and the payments are made within 30 days of the due date they could care less. We are just one of those.
2. Theres also a trust issue. You make the payments to the seller and the seller doesn't make the payment to the lienholder or they do. You have to structure it in a way where you can confirm payments were made in a timely fashion. Me personally I have done so many of these types of transctions I can't even remember. But lienholders dont care who's name is on the check as long as it's made.
There are several other factors to watch out for so be careful.
Homestar Financial Corp