Furthermore, I feel comfortable with PFF even though it is heavily weighted in issues of financial firms because if they were too big to fail in '08 they certainly aren't going to let them fail now.Hard money lending is another option if you find a competent and experienced debtor.

More houses with higher debt or fewer houses with lower debt.

Unless you're well-versed in the law governing correspondence between debtor and creditor, I strongly advise against initiating communication yourself.As an example, if you send an email that lacks a disclaimer or in any manner violates, or might violate the law, you will be liable for that correspondence.

It is entirely possible that this mortgage holder could still sue the borrower personally on the debt, or sell the right to do so to a debt buyer, who will sue them. 

It's the same quality that would make you honor a debt, or an agreement to pay the rent on a certain day each month.

First though, you have to get a JUDGMENT against the departed tenant (or the debtor); that judgment establishes the amount of money owed.

The debtor filed chapter 7 bankruptcy, the “buyer” was not an interested party, just someone interested in purchasing the property.

Eventually, we will have to exchange value for value and pay our debtors back.We need to have low unemployment, we need to have manufacturing and intellectual property and goods that the rest of the world wants, we need to maintain priorities which address the needs of the rest of the world, and productively and effectively execute said priorities.

Used wisely its a great tool to increase income and wealth, used unwisely it can take you backwards.The way I look at your situation is not from the point of view of having debt or being debt free but rather that while you have assets what happens to your stress level if you lose your steady source of income?

She, the debtor also argues the rightness of the bank's claim, but so far lost all court cases she started.