So once a bankruptcy plan is complete and the debt is discharged, the borrower can still loose the property through foreclosure for default or other breach of contract.

Or in the near future you sell the property for more than $120,000 to pay the mortgage and also profit any excess of $120,000.

Always maintain " the upper-hand""tit for tat" you loose!

Many lenders, including myself are not going to even try to distinguish between residential homestead and residential investment property - we are just going to stick with commercial property where the borrower can't later move in and have his attorney claim we made a non conforming consumer loan.Casualty of excessive Government interference in the market.

You can then sue in small claims for damages in excess of security deposit.

I have many time heard him referred to as a Rich Dad advisor, but never associated with the Rich Dad Education (very loose term) franchise.

I had to cover all my losses out of pocket by working a 2nd job - bc the investment threw off no excess cash flow to cover losses.

You loose.

I had several potential investors (including equity fund, individual investors) promised to pitch in but did not perform when we needed them, resulting loosing few deals we had under contract.

It doesn't affect longer term owners who have built up equity as much as they just loose some value when caps loosen up but for a new buyer at that high threshold it can sink you quick.