From what I have gathered, having a foreclosure on your record and filing for bankruptcy are grounds for rejecting an application.  

This doesn't take into account the possibility of completely losing the initial investment, and then the possibility of any repercussions of that such as bankruptcy, etc.Maybe I read you completely wrong, but if I understood you correctly, I completely disagree with your thinking. 

It will depend on how far his Mom's basement is from the bankruptcy court. 

(a) If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired.

11>Bankruptcy cases will increase.12> President will get re-elected for his "fantastic" "bigly" handling of the situation.13> We await the next disaster.

Most of the OTC liens are picked over properties that either are not worth the amount of taxes you'll pay plus foreclosure costs, or they have issues like tied up in bankruptcy, EPA issues, small strip of land or landlocked.

When people reach out to me, we back up the truck, analyze where they are financially, and discuss what I did after my bankruptcy in 2000 and Dave Ramsey style help them to realize how to get back to zero, so they can have 6 months in reserves, start building in their financial freedom account to be able to take advantage of the opportunities.Another segment that calls me we truly talk shop discussing strategies to.

So far, I have:Application incompleteApplication contains false informationDelinquent rentDelinquent credit obligationsInsufficient credit fileInsufficient credit referencesInsufficient employment recordInsufficient landlord detailsInsufficient referencesTemporary or irregular employmentInsufficient rental historyInsufficient income for amount of credit requestedNo credit fileNo employment recordNo rental historyRecord of evictionsRecord of bankruptcy, foreclosure, or repossessionRecord of excessive or overdue debts and obligationsTemporary residenceLow credit scoreUnable to verify credit referencesUnable to verify employmentUnable to verify incomeUnable to verify rental historyNegative report from previous landlordNegative report from employerOwner chose another applicantOther: _____________________I feel that the more reasons I have, the better off I'll be; however, I could significantly cut this list down by combining two items into one.

I know folks that leveraged their money in real estate between 2004 and 2007 and have had to file bankruptcies after that.

They may just already be prepared for their credit to be trashed and to file bankruptcy - after they have lived in it as long as they can while it's in foreclosure.