But then I also thought of bankruptcy and all her furniture was repossessed.Thanks everyone for the tips and ideas.

Then he was going to have to declare bankruptcy.  

Looking for some guidance if i should even pursue it:Situation: it went to preforclosurechapter 7 Bankruptcy filed which stopped proceedingsThe bank resumed foreclosure proceedings after 2 yearsThe property went to auction and was purchased (with a receipt and all)chapter 13 Bankruptcy was filed by the sellerThe Auction Buyer asked for their money backchapter 13 Bankruptcy case was dismissedAuction Buyer filed another motion to cancel the refund request and be the buyer of the propertyBank filed a motion agreeing with Auction buyerFrom everything I see, the auction buyer basically owns the property unless:the judge decides to refund them the money and puts it back for auctionI speak with the bank and see if something else can be done?

Are hard money loans even an option with a bankruptcy on credit report?

While the owner being sick is the underlying cause of why the properties ended up in receivership, it understates the process which brought them there - e.g. bankruptcy, litigation, condemnation, etc.

This is the kind of (capital has no cost) idiotic mentally that drove the former Soviet Union into bankruptcy.

I am subscribing to a professional service that provides me with professional comp reports as well as foreclosures/preforeclosures/fsbo's and bankruptcys.

In fact, some lenders require that you hold the collateral property in a bankruptcy-remote single-asset entity such as a Limited Liability Company.For example, the Freddie Mac Small Balance Loans program requires a single asset entity for loans over $6 million.

The deal you described will make your bankruptcy attorney very happy. 

@Hind R.There are two types of bankruptcies, Ch13 and ch 7Ch 13 is a restructuring of debt.