The Seller was ready to rent to an applicant with no job, that had just gone through bankruptcy with a payment equal to the rent, had no credit, and didn't have enough money in the bank for the deposit.

Hmm....Bankruptcy filings (per capita) by state#1 Tennessee:1.099 per 1,000 people#2 Georgia:0.953 per 1,000 people #3 Alabama:0.809 per 1,000 people #4 Michigan:0.661 per 1,000 people #5 Arkansas:0.643 per 1,000 people #6 Indiana:0.609 per 1,000 people #7 Kentucky:0.542 per 1,000 people #8 Mississippi:0.538 per 1,000 people #9 Missouri:0.534 per 1,000 people #10 Ohio:0.512 per 1,000 people 

That reason is that the city is nearing bankruptcy, the people remain jobless, and the population is leaving in droves. 

@Karl Mueller  kind of reminds me of younger investors who run up 25k in CC debt then file bankruptcy. thinking at the time 25k that's some huge number..

I understand the 2nd lien could be removed if a borrower completes a Chapter 13 bankruptcy and the property value is not sufficient to support the secured liens.  

I've rented one of my houses out to a couple who were multi millionaires before the housing crash and now have a bankruptcy.

The owner filed bankruptcy in 2011.  

I had a roommate from China who always paid on time like clockwork and said paying bills late was shameful, bankruptcy was shameful, and divorce was not considered acceptable in their culture.

Im not sure if they are involved w bankruptcy or what. 

talk to your attorney first, but the fees usually range from $400 - $2000 and most say they can remove most bad marks including bankruptcy.