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Subject To Finance
It is rare to find a seller whose property is not encumbered by some form of mortgage lien. The simplest way to do this is to make the contract subject to the existing mortgage. The contract is written for the full purchase price, but the buyer's property rights under the contract are subject to the rights of the seller's mortgagee. The seller remains liable to make the payments on the loan and the property may be foreclosed if the seller defaults.
There is also the possibility that lender may learn about the arrangement and enforce alienation clause (dues on sale and payable mortgage in full in certain days).
One approach that is sometimes used, to ensure that the seller makes the payments on the existing mortgage, is to set up an escrow account or servicing agreement for the contract payments. This is fairly simple to do since the deed is placed in escrow pending completion of the contract. In contract escrow the buyer makes payments into the escrow account, and the escrow agent pays the seller's mortgage out of the account. In this fashion the buyer is protected from the consequences of a default by the seller.