You have multiple issues at play here and legal consult with a good bankrupcy and Colorado Real Estate Attorney is in order. Then you must tackle the decision on whether it is profitable for your needs.

I'm with Sandy Padula and Norm Padula, JD, GRI NMLS#1483386  - it was my thought, too!

And how you going to do that when it's under BK protection?

I am with Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 on this one. Get professional help. 

I could not have put it better than Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 did!

Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 nailed this one!

Consult an attorney in Colorado. Too many potential issues to address here! Are you willing to roll the dice?

You need good legal advice. I recommend the lawyers at Village Settlements.

There are plenty of good opportunities in Maryland and you will be smart to stay in a familiar market. 

I have no idea... and how big an area is Colorado? Real estate is very hyper-local. I suggest you get the advice of a top real estate agent who know this specific market inside and out. And as legal issues relating to real estate are also local, I'd get the advice of a top attorney.

First consult an attorney.

I'm a CA Man. 

The only advice I'm capable of giving is "talk to an attorney in your state versed in these things."

Need attorney, court approval and will have to legally evict tenant or squatter. Tenant can appear with long lease, wreck property after you buy the note, burn the house down without insurance (insurance pays owner not you) many problems to explore and overcome. BK 11 since 2012 is reorganization??? 

Definitely one for the lawyers.  Good luck in whatever you decide.

You should discuss with appropriate legal counsel and tax advisors.

I'm with Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 on this one!

Good legal advice from an attorney, as already noted, would be essential. 

Manny,

I agree with Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 

Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 have your answer. Aside from the host of questions that would be necessary for someone to know if the property itself is a good investment, the specific law of your state is at play here. I would talk to an attorney.

You found a foreclosure in our market?   Maybe not in Denver?   I would definitely hire an attorney, as I just had a property UC with a buyer, where the BK attorney never released the property, and could not clear title.

Manny - Determining whether a property is profitable can only be defined and determined by you and what you feel is profitable. My definition may be different. I have seen many people disagree on whether a home is profitable or not, and there are many variables. I think you are doing the right thing by speaking with an expert, and hopefully they can help you decide.

IMO only you, your attorney and your accountant can answer that question

how much equity at the buy?

I am confused by your question. Bankruptcy and Foreclosure are two seperate issues. You can file for Bankruptcy and also have a foreclosure. You can also request the BK court to allow a house to be taken out of BK and sold if it is a short sale and no value to the asset. Buying notes requires you to do your homework. Is the house occupied or vacant, what condition, is there unpaid taxes, what is market rent, what is fair market value. Do your homework and it will tell you if it will be profitable.

Manny,

Take great care to determine if local law suggests.

Who has greatest authority, tax lien, HOA, note holder, municiple lien.

Purchasing NPN is an excellent means to acquire av SFH portfolio with many exit strategies.

I would need much more information before I would even venture a guess on this one.

It's impossible to make a determination based on the limited information provided. 

Manny Gathers - Well, check, check, check....

Every deal is different, and if they were simple everyone would be doing them.

Contact a GOOD RE attny and examine the situation well before deciding how much to pay, if anything, or if you should even get involved.

I think only you and or your accountant can answer this

Interesting...

Sounds like risky business to me. No venture no gain.

You got some homework to do....Trend, market values and condition of home for one and then the wild cards like governmental agencies, court times etc.

Lots of moving parts.  As to the profitability, that's a function of acquisition costs plus holding and selling costs vs market price.  Then there's the time element and aggrivatation factor to deal with.  And as others have said, an local attorney.

I stopped by for the comments.