According to the county's property records, the title is held by American Home Mortgage (AHM) as a result of foreclosure over 1 year ago (prior to the company filing for bankruptcy protection).

With regard to the promissory note, I would make sure your cient submits a personal financial statement showing he/she is insolvent and include verbage in their hardship letter that if the lender pursues a note, that he or she will be forced to file bankruptcy.Lenders hate bankruptcy as it can drag out the foreclosure process out for six months or more.Despite legislation for the 1099 and not being required to pay taxes on the forgiven debt, lenders may still pursue deficiency judgments or promissory notes, Although it will cost lenders legal fees or added collection costs, they are still required to perform due diligence on bank losses.

Several years ago, she had to do some sort of bankruptcy as advised by her attorney, and was forced to do a consolidation.

Yes I have a friend do the showing, but vet the tenant to my criteria:forget fico scoresforget bankruptcies(the above just tell you life gets messy)closely examine the 30, 60, 90 latesand look for collections for trivial bills, eg cell phone and utility servicesIf you're really remote from the property, your friend can can act as "YOUR AGENT" and perform the signing.

I filed for bankruptcy 6 months ago.

Could you explain what issues could arise from an owner in bankruptcy?  

- Should I immediately put this into an LLC, not knowing what costs could be lurking there that could send me into bankruptcy?  

I'm curious at this situation as I know all the other liens are wiped out if you foreclose, but no the ones from IRS or bankruptcy.

We have done the financial analysis, tracked the foreclosure and bankruptcy processes, spoken with the borrower and have very solid understanding of fair market value and risk of dealing with the borrower.I have two investors who will be funding the purchase and have some questions on how to structure the deal such that one of the investors is the principal and the other is a private lender.Can two individuals be named as fractional beneficiaries of the note after assignment?

Things he'll make you figure out you would have never thought of, what if you die, he dies, you file bankruptcy, he gets married and wants to cash out but you want to hold on longer, can you buy him out, if so at what value today's market value or his basis in the property or whatever amount he wants to decide, who determines FMV for a buyout.....you get the point. 6.