Therefore, not sure how Wells Fargo was able to obtain payment from HUD for the past due which had already been discharged in bankruptcy.

My goal...As I understand it, there is a 2 year seasoning period after a chapter 7 discharge before you can apply for an FHA loan. 

You probably spoke to someone quoting FHA guidelines to wait 2 years from discharge to qualify.  

He filed for Chap 13 a few years ago (has one year left before discharge) so he won't be able to get a HELOC until 2 years after bankruptcy discharge.

He filed for Chap 13 a few years ago (has one year left before discharge) so he won't be able to get a HELOC until 2 years after bankruptcy discharge.

My policy currently includes extended replacement cost coverage and building code upgrade coverage and also includes premise liability, workers comp, personal injury, and water backup and sum discharge or overflow.

Student loans are not legally discharged in a bankruptcy proceeding but a mortgage is, so the bank loses that way.   

When they get ready for discharge they 1031 their portfolio to where they want to retire. 

Something like this:$2000 deposit-$2175 damages-$15,000 unpaid rent=$15,175 owedIf the courts think you need to return the money or dispute wish to discharge some of the debt, that is for them to state.

For example, a garage on the property line (I still bought it, but had budgeted to tear it down), improperly discharged previous mortgages, improperly documented foreclosure judgements, and a strip of land that wasn't included accidentally (causing the property to violate setbacks).