Other things to consider: if seller files bankruptcy, divorce, or has judgements they will stick on the house and can be recovered by many sources- as in you lose.VA and FHA are the only assumable loans.

The seller was filing bankruptcy and I was at the right place at the right time.

I say this because legal fees can snowball quickly and even if you win, the owner of the property management company could just file for bankruptcy and start a new LLC the next day.You could file a complaint with the real estate commission but they are not going to help you get reimbursed for your losses.

I speculated that he was wanted by the law, was involved in a nasty divorce, or owed money to some money source that does not recognize Federal Bankruptcy, take your pick. 

But I was able to keep the house, through chapter 13 bankruptcy.

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?

Debt is real and bankruptcies happen all the time. 

How do we set the LLC up to make sure it's not going to be considered when looking at bankruptcy issues.5.

Needless to say there were no other lenders out there at the time and it was either sell or bankruptcy. 

They are: verifiable income of $5,550 per month, good reference for previous housing history, pass credit check over 650, no outstanding past due obligations, no recent (10 years) bankruptcies, a clean criminal record, and no previous evictions."