For example, if you have an LLC and in the course of work for the LLC, you accidentally drop a hammer on your neighbor's Lamborghini, he can sue the business and potentially win a judgement against the business.

Chances are you will - have a deficiency judgement, - if there is a second mortgage you will owe that money, - the IRS views the debt as forgiven income (see a CPA), http://www.irs.gov/Individuals/The-Mortgage-Forgiveness-Debt-Relief-Act-and-Debt-Cancellation-- your credit FICO score will drop as much as a foreclosure,and - your borrow-ability with any government agency like FHA will be harmed for a long time.So what is left?

I have registered with Active Rain, a while ago, and was paying around $49 pm, after 2 months I asked to cancel, they ignored my request and after 7 months I discovered that they were still charging my card.

We lived in the rain for two years and then finally ran for cover to another state!

Perhaps Joshua Marks, Ibrahim S or someone else from Jersey can jump in on this one.As for tenants paying back, that depends on whether or not you get a judgement against them.

Now coming to the hole on the roof; to date, 3 rainy season worth of rain has been going into the house.

Even then, what's a judgement against a bankrupt person worth?

I am pretty sure that lenders can pursue deficiency balances via deficiency judgement in Nevada, but I could be wrong.So your only risk is the lender foreclosing on the collateral property, and then pursuing you for any deficiency balance once liquidated.

. - Active rain- I blog here about once a month- BP - I blog here (as a contributor) weekly but also add a blog about once a month, and participate in forums when I can. - Google+ - I share things on here but don't interact on here much.

In some properties that are in very bad shape (as a lot are these days), some inspectors can rush to judgement and require all of a particular thing be redone (all electrical/plumbing) even if it may not need to be, or demand a gut rehab at most extreme.