More often than not, when the junior digs in, the agent will often times use the "They'll file bankruptcy and you'll get nothing" threat or the, "They will let it go to foreclosure and you'll get nothing" threat.

The original owner had a property manager in place but his company filed for bankruptcy a couple months ago and has had no contact with the tenant since. 

It asks for essential info like credit score, bankruptcies, criminal history, eviction, salary, where they work, if they have pets etc. 

She filed for personal bankruptcy, lost the home and got divorced.She tried to buy a home a few miles away, on a property with a rent-to-own option, and put down $3,000 upfront.

The only situation where I have heard of a foreclosure being reversed is if the homeowner can prove a mistake was made or if they are in bankruptcy.

Does failure destroy your reputation and your credit" - Depends on the level of failure, if you get foreclosed on or have to declare bankruptcy then it is going to ruin your credit.

If she knows she is going to file bankruptcy it becomes a can of worms.

I do know they filed bankruptcy 5 years ago. 

Personal docs 620 min credit score No recent foreclosure and/or bankruptcy Getting started with us is fast and easy.

Unless they filed for bankruptcy which has it's draw backs.