Just answered your other question.
When you did this contract, did title pass to you? Did you get a deed? If so, seller's mortgage should have been paid off and discharged, leaving title in your name subject to your seller's mortgage from you for the $54,000. If this did not happen, and his mortgage is still there, that is a monumental problem? Was an attorney involved in this transaction? You should nver have taken title with his prior liens still there. A foreclosure against him could be a huge problem for you. Speak to a local attorney about this situation RIGHT AWAY!!!
To questioners from West Virginia & New York: Although I am licensed to practice in your state, I practice on a day-to-day basis in Massachusetts. I answer questions in your state in areas of the law in which I practice, and in which I feel comfortable trying to offer you assistance based on my knowledge of specific statutes in your state and/or general principles applicable in all states. It is always best, however, to work with attorneys and court personnel in your own area to deal with specific problems and factual situations.