Any advice on how to correctly proceed with a bankruptcy wholesale? 

Here are some of my random thoughts on this.You want subs who's work is constantly done in a “workmanlike manner”, who will show up when scheduled and finish on time and on budget.When you are running a job, it's important that Trade A complete his work (ie Electrician) before Trade B (Drywall crew) arrives a week later, because if that doesn't happen you lose control of time, and time is money (Unforeseen construction delays and cost over runs can throw a project into bankruptcy).This requires good subs, and if they don't pull the load with this, replace them quickly.Learn how lien releases work in your locality (it's different all over), get lien releases when you give a check...no lien releases, no check.

(This homeowner was comIng out of bankruptcy and foreclosure).

A few (4-plex and chalet) have HELOCsI'm working with a local short sale attorney for the sale and have started the dialog with Bankruptcy attorneys as a back up.

I was discharged from a bankruptcy (chapter 7) over 2 years ago and have to wait the full 4 years before applying for a conventional loan.

The husband filed bankruptcy (Chapter 7) back in May last year due to divorce.

Even if he doesn't intend to sue you, his insurance company almost certainly will (called subrogation).If the house is in your name, they would be suing you personally, and going after all of your personal assets and income...anything that is in your name is fair game.If the house is in the name of your LLC, they can only go after the LLCs assets.Many people form a different LLC for each property (or every 3-5 properties) for this reason.Similarly, if something like this were to happen, you might have the option of declaring that particular LLC bankrupt without affecting your personal credit (personal loan guarantees notwithstanding), and you might still have several other LLCs that are still operating and financially sound...the bankruptcy of one does not necessarily affect the others.So it's a matter of not putting all your eggs in one basket (and not mixing personal eggs with business eggs!).

Based on your flawed logic, if you just got out of bankruptcy, have a 400 FICO and no job, as long as there is a "will" and good luck you'll find a "way" to buy a houe?

He has been divorced twice, bankruptcy, bad credit etc. so he told me but that he couldn't get a loan. 

Property is being auctioned, O&E and Pacer show a BK that is not discharged. Although, I'm not even sure this is the same person as the borrower. My title company didn't have an answer today since they are in FL a...