@David Muscovalley this is a more subjective question and personal than objective.

Hello,I bought a property last year subject to existing financing.Later I sold this property on owner financing to another buyer.I was making regular payments to the existing loan since i sold the property.Last month I was unable to make the payment to the lender and on further inquiry I found out that the original seller filed a bankruptcy under Chapter 7.What should be the ideal thing to do now ?

Character is a crucial part of banking but it is very subjective so it is imperative to have a good relationship with your lender.  

A seller subject to a short sale is usually at the bank's mercy.  

This subjects you to that interest rate risk should they rise.The strategy I currently use is a combination of the two.  

I'm trying to build a foundation of knowledge on the subject.  

I don't have to be subject to certain rules being an Agent requires which I feel I shouldn't have to be. 

That's like asking who has the prettiest baby...it's far too subjective for anyone to answer truthfully, especially without any parameters on which to consider. 

If so, offer to buy them "Subject To"Is it a mix of all of the above?

I currently have several properties obtained "subject to", and am currently exploring options to utilize their equity to fund other non-RE projects.