Hey BP, I am wondering if the is anyone who can give me some advice on my inevitable foreclosure or short sale of my current residence and bankruptcy.

An applicant who I may consider next week for a rental, only due to his being the best of all the bad apples I have interviewed has recently filed for bankruptcy in the past year and forclosing on a surpirisingly cheaper home that only cost at his purchase $44K.

Using a lease/option would button up issues like bankruptcy risk and such though so I would love to learn more if you have engaged the experts necessary.

(Subject to local rules, consult local attorney, yaddah yaddah) PS: Just saw the bankruptcy angle.

I'm in the process of getting a secured credit card now with the bank to try to build my credit a little but up until I discovered real estate investing I was under the influence that i could be successful by just hard work getting all of the overtime I could as I've always been a little weary of credit after my parents had to file bankruptcy when I was 14.

It was the start of the real estate bubble and I got lucky.I paid down my student loan as quickly as I could because student loans aren't dischargeable in bankruptcy. 

BTW, most properties never come up for auction, they get stopped via owner filing for bankruptcy.

You can insure against this.A partner/principal can be bonded against other risks, non-performance for any reason, like disability, criminal acts, bankruptcy, or just bad management, that may be expensive and not worth the arrangement, so you would have risks.IMO, knowing very successful builders and developers, about the only way to guarantee any promise is by pledging assets, other assets to attach in the event things don't work, and at a value sufficient to cover the obligation after the collateral is secured and sold.

Hence, after maxing out our credit, laying off our employees and my wife and I working 16-18 hours per day (I still worked my regular day job in addition to working until 1:00 am at the bar), losing our house, and finally, filing bankruptcy, we learned many valuable lessons.

If it succeeds, it could become a banking sector with very little overhead, less expenses, lower unsecured rates, better return to investors. 10% is great when CDs are going at 1%.Eliminate or moderate the bankruptcy risk with increased stability, then it will have better returns on average than all the major stock indexes and mutual funds.