So technically, I was bankrupt!

You need to understand you are starting a business, which is OK, but most do go bankrupt in the first 5 years.

The project that he was attempting to revitalize bankrupted the two previous companies who took it on. 

I thought about that option but didn't see any value in a penalty from someone who's fringing on bankrupt.  

My tenants are recently discharged bankrupts who with some family help have put together money as a down payment on a property.

Basically, we have a possibly bankrupt borrower, a bankrupt lender, an agent who (reasonably) won't send us the PR without an offer, a bondsman's lien (4th), and several other substantial physical issues including possible misrepresentation of the lot.

Creative Finance is a key to people that are rookies.Pretend you are bankrupt with a 550 score.Get away from needing down payments money, get toward finding a way to -- Cash or Terms (give low cash offer)- Use Lease Options, Sub2, Installment Land Contracts, Wraps - AITDs, Private First Mortgages (free and clear) to get the solution without banks.- Use IRA Private Lenders and Joint Venture Partners.

Here's an article I found:http://www.nolo.com/legal-encyclopedia/bankrupt-tenants-how-new-bankruptcy-29689.html"It's not uncommon for tenants with significant financial burdens to declare bankruptcy.

In a more complex since of what the law was written for; using notes, refinancing, other deceptive representation or other financing options to strip the equity away, so the home owner ends up going bankrupt and the financial institute takes the property, but that's another topic in itself..

I like to research things a lot before committing and I think I have a good chance of not going bankrupt from real estate :)