The problem with doing a short sale (or waiting until foreclosure) after a BK is that they may still be liable for a deficiency judgement, but I'm not certain on this.  

There is a dash of incentive to hold the seconds for potential deficiency and surplus claims as well.The reemergence of second lien desirability has come by mainly the street level investor.  

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

Like your tenant wrecking the place.Even if you do a short or let it go into foreclosure you will likely get a 1099 for then forgiven debt or a deficiency judgment.

You can get a CO with deficiencies on it, and fix it within a certain amount of time period. 

I know I did not until a client was explaining how he got wiped out when his vacant house burned down.. 100k lost still on the hook for 70k loan .. can't walk ruin his credit and in Texas they can and do get deficiency judgments when you walk from a mortgage regardless of the reason.. its something that can destroy an investor or put them in bankruptcy.  

Ohio allows deficiency judgments.

Or, you can go for a short sale with perhaps a deficiency judgement against you.

The alternative is for the 2nd to say "no" and for the 1st to say "ok, I will take the property to foreclosure to collect as much as I can and you, Mr. 2nd position can have whatever is left over, if anything.The subordination and loan modification "rewrite the agreements", thusly the new order and the new dates.The lis pendens means there was a lawsuit.The judgment filed in Jan 2017 looks like the borrower lost the suit and owes $84,905.88That can mean that there was a deficiency judgment on the sale of the property.

The BK only effects the ability of the mortgagee holding the mortgagor personally liable for deficiencies, it does not effect the collateral or right to foreclosure unless the court acted on that matter specifically.