I am an attorney who handles creation of corporate entities and trusts to hold real estate, as well as litigation over deals gone bad and disputes with contractors.I have one residential property that is a headache, as it is over an hour away from where I live, but I plan on selling it (although it was owner financed, and a bankruptcy has stalled he foreclosure).

Also have a requirements list that they get with the application - rent can be max 30% of income, max number of people in unit, full deposit required before moving in, no drug or sexual convictions, no bankruptcies or evictions in the past 5 years.

The business model here is to a) not ask a lot of questions about what you're insuring, which allows you to b) have the cheapest insurance, followed by c) honor an unusually low percentage of claims , leading to d) eventually your ability to issue new policies suspended by the state [but people can renew existing policies] and e) make a crap ton of money in the process, followed by f) that carrier declares bankruptcy, but it's ok because g) you and your buddies with all that profit from the now-bankrupt firm go start a new insurance carrier, and of course h) rinse and repeat.

If she’s in no position to declare bankruptcy she better get our of this before she owes waaaay more than it’s worth. 

@David C.YesTypically if the first is current the borrower will file bankruptcy to avoid foreclosure

I don't see a bankruptcy filing, you are unsecured creditor. 

The Capital Stack determines who has legal rights to certain assets and income, who receives priority of payment in the event of an uncured default, and in which order each party may be repaid or given authority to take over or liquidate assets in the event of a bankruptcy.

I'm working with a bankruptcy lawyer in San Diego (where I currently live) who is instrumental in guiding me through all my financial hiccups.

I heard the that bankruptcy is what is offered the most.

We master leased the lot for 15 years before we bought it out of a Bankruptcy estate on a first right of refusal.