Legal concerns with subject to?

[James McGovern]

1. What happens if the seller files for bankruptcy?

2. can you be sued for wrecking the seller's credit if you stop paying or pay late?

3. Is there a way to protect the seller from downside market risk ? lets say the market declines or crashes, the buyer can give the seller the keys back and now get to sell a house that needs cash to fix it up and sell, but would  be selling for less than you'd get now

[Ken M.]

Quote from @James McGovern:

1. What happens if the seller files for bankruptcy?

2. can you be sued for wrecking the seller's credit if you stop paying or pay late?

3. Is there a way to protect the seller from downside market risk ? lets say the market declines or crashes, the buyer can give the seller the keys back and now get to sell a house that needs cash to fix it up and sell, but would  be selling for less than you'd get now

1. If the seller files for bankruptcy, you're in deep dodo
2. Can you be sued for wrecking the seller's credit, Of course
3. No, you can't just give the keys back.

You are entering into a legally binding agreement, without telling the lender, who has rights. 

To answer the question you asked, Yes, it can be a very big problem.