From my (non-lawyer) experience, yes, the lease remains in place (The Covenant of Quite Possession).  

County Superior Court, searching Unlawful Detainer(s)Some are listed as UDxxxx (the case number) and some are UDjjjxxxx (jjj jurisdiction xxxx case number)The last status is a Judgment and/or Writ of Possession, meaning the case is closed.If any Hearings are still pending, the case is still active.

"Your" assets need to be kept distant both from you(r personal possessions) and from each other to minimize losses in the event of a successful lawsuit.

What other debt obligations does the payor have?

So let’s move on.3 years later, we managed to sell that house for 1.3 million rupees, and use the profit to clear the debts, and make the down payment for a bigger house in a better neighbourhood for 2.7 million rupees.

Usually "after I do a walkthrough" would be part of that speech, but not in this case.At least in our area, getting the keys back is very helpful from a legal standpoint (clearly shows tenant has given up possession).  

I was enthusiastic when I read an article about debt relief act which has to do with Short Sale. 

When the bank shows up as the mailing address I thought it was in the banks possession. 

Yes, you bought the asset with its debts.

My investing is limited to part time as I still have to work an 8-5 jobs since the income from my rental properties is not enough to support my family and the debt against them at this time.