When a bank goes bankrupt, we are left relying on FDICs for our savings, but what about your loans and mortgages?

I did some research with at title company and there is an unreleased mortgage in favor of a credit union, the previous owner went bankrupt, the title company would not review the bankruptcy unless I purchase the property. 

That way if you suck at it, if you hate it, or if the market falls apart, you will not be bankrupt and homeless.

The property was in the New York area, the investor was all but bankrupt at the time to boot so he couldn't really buy it anyway, but still he obsessed and everyone bet against him after finally giving up on trying to stop him.That investor was Donald Trump, and that deal, the impossible sure looser deal, is what brought him from the ashes, wrote books, made him famous, and launched the multi billion brand Trump.I would say the most dangerous thing in this world is a psychic pessimist; once computers in the home was impossible and now we carry them in our pockets, history is made by those who do the impossible, even in real estate. 

Many people in 2006 got over leveraged and when the economy and housing market got in trouble they got into financial trouble and got their homes foreclosed on, went bankrupt, etc.

Motivated sellers can be estates/probates, out-of-area owners, vacant property and code violation owners, pre-foreclosure/NOD’s, those carrying large mortgages on rentals with negative cash flow, retiring/burned out landlord, bankrupt owners, etc.

There is a greater chance that a private company will go bankrupt before the government. 

Here is the link of a recent wholesaler turn bad while starting out http://www.biggerpockets.com/forums/12/topics/380162-went-bankrupt-trying-to-wholesale-heres-my-sage-advice

Are they in fact bankrupt?

This should boost your credit score way high because again, you are competing with others who have gone bankrupt.