Tenant doesn't pay (can't), skates by on the dime of the landlord until the landlord loses his property with huge debt or bankruptcy (harder and harder to get), institution forecloses on property, sells it to larger still solvent institution who writes off a few months loss until it can evict tenant who is now way too far behind to pay up.

@Matthew Grebeta it sounds like the debt is causing stress in your life and the main goal is to get rid of it or at least that’s what it sounds likeIf that’s true, then either find a way to pay off the debt or just sell the house and go to the RV if that’ll make you happy.

So... I have access to a steady stream of profitable house flip opportunities, as well as local contractors and labor that is fairly priced. I’m thinking about raising private capital to acquire and rehab these proper...

So... I have access to a steady stream of profitable house flip opportunities, as well as local contractors and labor that is fairly priced. I’m thinking about raising private capital to acquire and rehab these proper...

For the hypothetical, I'm assuming it is a Chapter 7 or 13 bankruptcy (not 11 (business) or 12 (farmer)  ), and that it is the borrower's primary residence.Chapter 7:  if no equity in the property (i.e. no reason for the bankruptcy Trustee to liquidate the property), then borrower can potentially reaffirm the debt or choose not to reaffirm the debt. 

"Defer My Pay" is a great app for IOS and Android users that allows two parties to spread payments out over a few months to get the debtor out of a rough patch and allows the creditor to receive payments over time.

It became a crash and burn machine in a market downturn and turned legit millionaires I knew into multimillion dollar debtors. 

You will needs substantial cash reserves, very little (none is better) bad debt or your debt to income ratio will be disqualify you from getting that mortgage, you will also need to have a large down payment (20% at least) if the property isn’t your primary residence.

Typically they will use bridge debt or similar until they can achieve a DSCR high enough to transition to agency debt. 

Leverage is using borrowed debt or equity to increase your return.