Agree with your point

As buyer, insist using escrow account is absolutely necessary. Do not just hand the monthly payment to seller directly. And buer/seller need to use an experienced attorney whose speciality is Real Estate transaction to close the deal.

As for "How comes so many investors who bid properties successfully from auction? It does happen that many owners have considerable equity, but walk away from properties."

That happens. But most of time these owners were having cash flow problem, such as lost jobs, no income to pay for the mortgage. As long as buyer is paying and using escrow, this risk can be mitigated.

As for buyer having perfect credit history, still can not get a loan. That's very normal nowadays, yours truly is the example. :-)

In 双呆's case, buyer (hu*****and and wife) both work for Federal Government, likely thier income is stable, but they have only $10K in their bank account, there is no way to get converntion loan. But it does not necessarily mean they represnt a high credit risk.

Due on sale is a real risk I agree, so as seller, you have to deal with it, what's your risk mitigation plan?

Wrap around mortgage is not for everybody I agree. Wtat I do not agree is becuase it has risk, so just do not use it.