If the bankruptcy isn't yet discharged, or it was recent and already there are collections: very bad risk.

In building a brand and business, no faster way to lose any referrals than to drive former homeowners into owing the IRS money which can never be discharged.

You can do a short sale after a bankruptcy is DISCHARGED, provided the asset wasn't surrendered.When a homeowner says they can't come after me, it means the lender cannot pursue the homeowner for the deficiency if it forecloses.

This same rule applies to things like filing an action to discharge a mechanic's lien or any other type of litigation.

Truth is, I am planning to file for bankruptcy and discharge this debt as well as my condo which is upside down, but I am still a few months away.

2 years after discharge of a 7 ot 13 on a BK.3 Years after the home transfers from thir name in a foreclosure.

Residential / Commercial / Business & Construction loan programs: ---- Assisted Down Payment programs ---- Recent Foreclosure, BK and Short sale (1 day after settlement or discharged for purchase and R/T refinance).

Outside of that we tend to use BK flags as further insight and do a little custom configuring to produce our bids based on simple ideas of if BK is filed and if Proof of Claim is filed, then payment streams and discharge and dismissal.  

Knowns:Both listed owners died 8-9 years ago.They bought the house in 1971, last mortgage I could find was discharged in 2002.The property has been vacant at least 4 years.Property needs about $75,000-$100,000 worth of work (if I hired it out, I can do it much less myself).

It Doesn't End with the DischargeIf you do go the bankruptcy route, make sure that part of your bankruptcy attorney’s service is to contact all of your creditors after the bankruptcyis discharged to make sure that these creditors’ items on your credit report are reflected as having been discharged in bankruptcy.