Even if it was an SFR and you rented out the other bedrooms, aren't you still obliged to declare the income?

Did you have to declare bankruptcy?

You can't gather an agent, a contractor and a property manager and then declare "ok, ready, let's get some deals".

However, it seems to me that Koreans are taxed on their worldwide income, so you may need to declare that income again in Korea and talk to a Korea-US tax expert to see how the treaty to avoid double taxation is enforced. the alternative is to invest through an LLC and elect to make that company fiscally opaque.

Recorded deeds must include a declaration of the sales price.

This includes taxpayers who live in a federally declared disaster area, have a U.S. tax filing obligation, and had previously obtained a valid 6-month extension of time to file their federal tax return.

Or is it too late and better to just accept it as a lesson learned and declare him the better man...?

Declare bankruptcy? 

All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

Still need to verify other details, but what I know is this:- Client has declared bankruptcy- Client has a Mechanics lien on house for 16k- Client owes bank 900k, and house (not yet verified thoroughly) is appraised at 550k- The appraisal is before client leaves house, which will have some further damage to it