My credit score was really good before the bankruptcy and I have been able to recover it pretty quickly. 

I've been there a few times and to small claims for recovering unpaid rent, its a lengthy process but I did it more for the experience and knowledge, and justice than the money. 

People recovering property after a void tax sale must pay the investor taxes and interest.

Raising - and recovering - OPM provides essentially unlimited deal funding.My $0.02 ...

In that case, they recover $500K from your insurance, and they take your property and that's it.  

It is definitely an expense but if these expenses turn into money making investments, the income-expense gets reported on a specific Schedule E  and I am told that if the expense is pre advertising date for a rental, they they are to be capitalized into the purchased rental or other property only to be recovered when depreciated or sold.   

I have my eye on Florida which is still slow to recover, so opportunities abound there.

My name is Adam Zard, I'm a recovering real estate attorney and current commercial real estate broker in the Denver metro area.  

We don't have enough competent people actually building and remodeling homes for the national inventory to recover and rebound smoothly.

If her credit is repairable, maybe she can get a hard money loan temporarily (6-9 months) while her credit recovers, then refinance the loan into conventional?