Remember, they can always refer themselves😊Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:Just inherited a homeHad a loved one pass awayIs behind on their mortgage or tax paymentsHas a relative that can’t take care of their house anymoreHas a house they’re having trouble sellingIs facing bankruptcyKnows a probate attorneyKnows a bankruptcy attorneyetcWhy only three off the list per contact?

And that, in and of itself, declares it's true motive is ulterior to it's actual deployment. 

Taking that money out and anything that leads to more people using the equity from their homes and reduces the friction to that process is not good in the long run.As a NPL buyer who buys 1st position mortgages, we do watch stuff like this carefully as the moment these borrowers get high CLTV's any drop in pricing and change in economic conditions will lead to more foreclosures versus bankruptcies.

Rather than take a complete loss on the uncollectable debt, can I take the assigned debt, make collection efforts and upon failure to collect declare the loss to offset the capital gains?

You can contact the bankruptcy court to learn the current state of the case to see if buying it is feasible.

None of these fines are discharagable in Bankruptcy.

Government subpoenas can be and are declared invalid by courts all the time.  

One declares so many things to be a crime that it becomes impossible for men to live without breaking laws.

Are this funds taxable, do I have to declare them as extra income on my taxes.

Demand he shows proof of funds immediately to close on schedule and if he doesn’t Declare forfeiture of earnest money and right to purchase terminated.