It was called debtors jail.  

In addition to answers:-- Income is when you consider money received as revenue-- Deposits received should be considered as a Other Current Liability-- Money paid out could be Expenses, Cost of Goods Sold, Fixed Asset, Other Asset, Other Current Asset, Other Current Liability, Long Term Liability or an Equity AccountIt all depends why you paid money, does it increase the value of your property, return a debt or .....Gita Faust

Someone can lend you the money and has a mortgage against the property as security for the loan (debt).

I was able to find out where my debtors worked through Facebook as they occasionally changed jobs and simply kept filing to garnish wages until I was made whole.As far as helping out future landlords, you've essentially already done it. 

If you are new the solution is not to willingly get in debt or fail out the gate before you start the race.

It depends on your ability to pay back debt or interest payments in a timely manner.

Wage garnishments usually require a judgment against the debtor first.

In this situation it appears that is not the case and if the house sells medicaid will be one of the debtors to be paid.  

Mind you, the $1.5 Billion property tax hike mentioned here does not cover CPS, Cook County or other governmental debt or any pay raises or retirment benefit hikes that occur before the debt is paid off. 

Will this one be eligible for Agency debt or will you be looking for a competitive small balance commercial program to exit the hard money?