Or was it an unfortunate sequence of events that led to a divorce, foreclosure, or bankruptcy? 

I wouldn't recommend filing for a bankruptcy to anybody unless it was your last option.

I know the bankruptcy hurts your credit but I would think bankers would not mind that bad. 

Details:4 years post chapter 7 bankruptcy, how is discharged loan debt that the home owner is still paying looked at in looking at DTI in looking at refinancing? 

If it's a buy and hold, you can be the minor interest holder, that limits your liability and the member's from judgments, bankruptcy, creditors, etc.

What are the ramifications should you own the note, aren't able to modify it/get it performing again, can't get the deed in lieu, only left with starting the foreclosure process, and during the process the occupant declares bankruptcy?

I sold my investment properties to pay off my debts and provide basic income to support my family yet the job market did not recover fast enough to avoid bankruptcy.

What are the ramifications should you own the note, aren't able to modify it/get it performing again, can't get the deed in lieu, only left with starting the foreclosure process, and during the process the occupant declares bankruptcy?

I received notification from my property manager that the tenant called on the 11th of the month, after not having paid this months rent, and informed them that she had filed for chapter 13 bankruptcy a couple of days prior.What does that mean for me?  

The current owner says he went through chapter 13 bankruptcy years ago and was surprised to hear it was still in his name at the court house.