I believe the bankrupt will absolve your debt with both lenders (lien holders).With that said you can't do a short sale unless the lender in the first position is on board.

Worst case scenario (and I've read enough stories to know it happens) you just bought a house and Murphy strikes with his best shot to bankrupt you....what's a reasonable emergency fund to cover most of what he'll throw at me without rendering me illiquid?

Our contractor friend went bankrupt up here with two Subway franchises.

If the answer is negative, you are technically bankrupt."

No electrical done.Builder went bankrupt and property is in the hands of some acquisitions co.Comps in the area are about $270kI've not looked gone to county building department yet.

I took loan for a private owned property and the fear of losing came into my mind as my neighbor become bankrupt.

Property taxes are only one component of all expenses, so the question is whether the sixteen percent rent increase covers your total increase in expenses plus additional risk and return.If your expenses (and reserves are an expense) are greater than rents (which are set by the market), then sell or go bankrupt.

That's how Dave Ramsey went bankrupt.

If you are not financially prepared it can bankrupt you.  

You would go bankrupt in a hurry if you were just running down to the courthouse steps and blindly plopping down a half a million at a time.