The reason you need to cover your families gross wages is that if there is ever a liability claim against you, you can not discharge it in a bankruptcy so the only way it goes away is it must be paid.

Those are cases where the assessed value is well below the true value.Other risks are fire, building collapse or demolition (that is a real risk in Baltimore) bankruptcy, IRS liens, condition of the property, the hidden costs and not knowing the rules.

So, you're competing against "the world" at that point.You're actually better off developing ways to find properties which aren't listed yet - pre-foreclosures, probates, divorce, bankruptcy, incarcerations, etc.My $0.02 ...David J Dachtera"Success is not a destination.

We've got another situation ongoing where we actually had a first position lien, sued for damages, were awarded a FIFA lien against the owner, foreclosed, owner declared bankruptcy, and we're still going after it... almost 3 years of litigation and 5 figures in lawyer fees to get paid from one job.So, in conclusion... perform->pay doesn't hold much interest for me.

We used to mail up to the week before and people would call us the day before (sometimes the day of) their auction and the only thing we could advise was to talk to a bankruptcy attorney (filing stops a foreclosure - at least temporarily).  

What can I do if I find a motivated seller that has filed or is filing bankruptcy?

Doing a title search on each home would be very expensive given the auction could be canceled (plaintiff files for bankruptcy), you loose the home to another bidder, the reserve price announced shortly before auction is too high etc. 

Having knowledge of foreclosure, bankruptcy, regulations and compliance is important and is no single topic is a small idea to digest.  

I sent over the Notice of New Landlord letter and the tenant told me she was going to file bankruptcy (so she wouldn't have to pay rent I'm guessing).

Lastly having the borrower file bankruptcy can put a dent in the anticipated schedule if foreclosure is imminent but can be worked-around.