He decided to let the bills go which lead to bankruptcy which lead to the forclosure on his home.

Then there is the problem of bankruptcy filing should the guy in the building decide to do that.

They broke up and one of them ended up filing bankruptcy and loosing all of his rental properties.

If they have a history of evictions, bankruptcies, foreclosures, etc then they are high risk and not worth the trouble.

If he is in that business, then he is probably hurting right now with the market down and maybe he over extended his portfolio and stuck with a bunch of projects that are complete ready for sale or projects in various forms of completion, but at any rate there are no sales going on and therefore no cash flow coming in, but all those bank lines he has needs to continue to be paid.It sounds like you have a legitimate action against him, but if you do bring an action against him at this time, then you could spiral a down fall of the company by other lenders or investors following suit and push him into bankruptcy which means nobody gets paid very much.I think right now, if you have a speaking relationship with him, you may want to approach him and have him reiterate what your share of the gain on that transaction was and have a new contract stating your new return.

The buyers (after 2 -3 years), are in bankruptcy (chapt 13), but have not listed my client, the sub-ordinate lien holder as a claimant in the case.

I've asked my realtor about wholesaling, bankruptcies, short sales, vacant properties...and she has told me that it can't be done.

I have found that during this period, a Short Sale, which requires negotiating with the Bank or Lender, or Bankruptcy is often the path of choice to stop or delay the Foreclosure proceedings.

Or theirs a death, divorce, bankruptcy, or other urgent need to sell below market value.Step 6) Go to the bank and tell them you just bought a home and that you need a line of credit to do the rehab.

I don't have any bankruptcies.