Chapter 11 is commonly called reorganization. It is designed for businesses or for individuals who exceed the financial limitations for Chapter 13 eligibility.
Business owners may continue operations and propose a plan to meet their obligations, or they may form a plan to sell the business as a going concern rather than liquidate assets. The plans usually contemplate the sale of some assets, forgiveness of some debt, and a generous repayment schedule over time.
Things rarely work out well for the debtor, and the vast majority of Chapter 11 cases either result in the largest lender owning the company at the end, or the company changing its plan to one of liquidation. Just because the goal is liquidation does not mean the debtors must convert to Chapter 7; they are said to be in a liquidating 11.
You can buy property from the Chapter 11 debtor-in-possession (if the borrower remains in control of the case) or the Chapter 11 trustee (if the creditors take control).
In both instances, any sale must receive court approval. A debtor with more than a few rental properties may be able to obtain a higher price selling the properties one at a time rather than offering the entire portfolio to another investor.
This may present some true opportunities for potential homeowners and for foreclosure investors.