Marketing skillsThis is a business with a real estate aspect, not a real estate “investment”I have purchased 4 or 5 properties out of probable through the years, just as I have out of bankruptcy, or foreclosure.

I am in the middle of a chapter 7 bankruptcy so banks won't look at me.

Some states have redemption periods after the sale (I don't know if Florida does) If the owner files for bankruptcy even 1 minute before the sale, that stops the sale or reverts the sale, depending on timing.

They were previously posted, got delayed - new sale date, (law suit, bankruptcy, clerical error, etc) then went to sale 

And if the buyer stops paying, or the note is accelerated under the due on sale clause, the buyer can potentially continue ownership without making payments for as long as it takes to foreclose in the state in question PLUS the length of time given in any TRO, PLUS the length of time it takes to get through a bankruptcy filing.  

We have been looking on the HUD.com site and see a lot of houses in our area undergoing bankruptcy, pre-foreclosure, and foreclosure.

Does anyone have experience purchasing a property where the mortgage is paid off and the seller is going through bankruptcy, needing to sell the house to pay off the debt?

Unless you plan on filing for bankruptcy and halting all payments and game the system (btw your reputation will be destroyed and likely no bank will want to work with you for a long time) - I recommend you sell. 

@David NewfangYou could do this as a joint venture but the risk is hugeWhat if the owner decides not to sell, files bankruptcy or takes out a loan against the property wiping out its equity?

They have money, or else they wouldn't be starting projects like this.Trump Entertainment, Donald's company that owns casinos in Atlantic City, filed bankruptcy on Feb 17.