Then an Automatic Stay goes into effect that stops the foreclosure without a court OK.Depending on which Chapter of Bakruptcy is filed, the mortgage holder has a few options some as set out above.A sale of the property would have to be reviewed by the court as to price and if it is in the best interest of the "estate" (debtor's bankruptcy)What did you mean by "It sounds like the possibility of getting the property goes down the tubes when either of these bankruptcies are filed. "?

For example, I think we are late cycle, so I lean toward the safest part of capital stack which is debt (or debt free equity).

During this period the debtor must obtain consent by the Trustee to enter into any financial contract that presents a liability or in acquiring any equitable or legal interests in other property.Bottom line, the court will allow the debtor to enter into agreements to expense funds for the necessities of a debtor, leasing a property at fair market rent, buying food, clothing, having a car repair or other costs of living.

I often represent debtors so I would argue that you must file a foreclosure even on rent to own deals.

Additionally, that incorporated US entity could then go out of its way to have zero (or minimal) earnings, either by making additional principal payments on existing debt, or by purchasing additional properties.Once a "beachhead" has been established in the US, it seems wise to use the proceeds from that initial property to reinvest in the local real estate market, thereby side-stepping some of that foreign exchange frictional cost.

However, generally speaking, a Bankruptcy Trustee can declare a specific debt as non-dischargeable through bankruptcy due to "Fraud" on the part of the Debtor.

The intent is debt relief - you can apply it to car loans, credit card debt, or existing mortgages, but you will not be able to just get a personal check at closing.

Car loans, credit card debt, student loan debt or anything else? 

The mortgage debt can be discharged as a function of the plan which means the debtor no longer personally owes on the debt.  

LOLCurrently I only have 2 mortgages on investment properties, my primary is paid and I carry "no" credit card debt or other debt.I have funds for the down payment but not completely for the rehab.