So I assume they just need to declare that profit in their country? 

The background check shows that he has a previous eviction filed in Aug 2009 with amount $0 on the judgement, and a bankruptcy filed Jan 2009 (claimed May 2009).He has been renting a house after 2009 to today with good paying record (checked with his current landlord).

A few years later the guy filed for bankruptcy and the mortgage company would not allow me to keep the property or give time to finance it in my name.

And great story, glad to hear you came out of it okay because I know some people that have went 20k+ in training with gurus to end up filing bankruptcy..  

I was waiting for the President to declare “mortgage forgiveness”2.

Hello Andres, I´m 33 years old and from El Salvador too, I was looking for some accountant advise for declaring “rentas diversas”, El Salvador” and I found your fórum question.

I understand the processor bankruptcy caused a big disruption but it also seems like FTF (Upright) was overly leveraged because they've proceeded mass sell their loan book, which means if you held one of the loans that will be sold you will receive no interest until due diligence is completed and possibly a hit to principal depending on the final price the buyer pays. 

Several ways this can happen.Friends, family, some social service organization gives the property owner money to pay taxes.Income tax refund gives them some cash to pay.Have the property under agreement to be sold, or actually have a closing that makes the property sold and back taxes paid off.Mortgage company decides to pay tax bill at the last minute.Work out a payment plan with the tax collector.Get a court order from a judge to postpone the sale.Declare bankruptcy and receive an automatic stay.Probably many more that I missed.

My thinking is that such folks will eventually see an attorney for other reasons, credit issues, bankruptcy or related issues.

The realtor said they are representing the bankruptcy court in this property.