Buy 7 figures worth of Credit Default Swaps on Morgage Backed Securities a week before Lehman Brothers files for bankruptcy?

If a sponsor files bankruptcy, many if not most non-recourse loans turn full recourse. 

I haven’t run into people disclosing an eviction, only bankruptcies.  

If the investment has professional administration, you will have access to the answers to those questions, but also much deeper vetting of the sponsor that will include personal background checks covering things like bankruptcy, judgements, litigation, criminal history, and other red flags related to a sponsor that you would want to avoid, plus other items that investors rarely consider like ensuring that the properties are actually titled correctly, property taxes are paid, and insurance is current.

She is also going through bankruptcy - so I'm not sure how that affects the whole situation as well.

Divorce, Bankruptcy, Law Suits, Liens, Federal Taxes, Judgments, Probate, you name it.

For an investor that is willing to look out here, they will find deals with bankruptcy, pre-foreclosures and absentee owners.

Keep in mind, the owners can "cure" the default before the sale, sell the house, file a bankruptcy to stop the sale, do a "deed in lieu", sell privately, pay off the loan completely, do a loan modification with the bank.

I have reached out to a couple real estate bankruptcy attorneys to try to find a good deal but have not have any luck.

Since after going thru bankruptcy, buying a credit line help me boost my credit score by about 40-70 points and helped me get higher limits on my credit cards.