Then they would walk away from the property or declare bankruptcy with all the gains in pocket.  

He already had a bankruptcy.

Might be what the country needs is a bankruptcy to fix this debt , currently we are headed that way with this increased spending.

The appreciation play becomes even riskier when people take on a negative cashflow just hoping for appreciation - negative cashflow could lead to bankruptcy.

They were asking $425,000, but it was a bankruptcy sale cross-listed by an agent from another city about an hour away.

All of which can be accepted, modified, or completely rejected by a bankruptcy court judge if he finds its in the best interest of the majority of parties concerned not withstanding the agreement executed by the lender and borrower.

Gone was their credit rating if they had to declare bankruptcy.

401k plans  and other ERISA plans have special bankruptcy protections.

Many investors do become financially independent from income investment properties but as with any business many also fail and face bankruptcy.

They're thinking about letting it just go into foreclosure and declaring bankruptcy.