You really need to check your local laws. I'm all the way out in Oregon and deal with shortsales/foreclosures in Oregon and Washington. What goes out here could be very different than what happens in Florida.
Just a quick answer based on MY locale, to the OP, you would be fine as it was purchased as a primary residence as long as you structured things right. IN MY AREA they don't allow judgements or liens for deficiencies on properties that were purchased as a primary residence, even if you eventually moved out of it and assuming you didn't take a ton of cash out at some point. Even if you did, there are still a ton of ways around it and 9 out of 10 people will just escape with a mark on their credit. Which really only screws you for about 2 years, though it will report for 7.
Your doctor friend on the other hand would be screwed as investment properties are fair game for lenders to pursue you in any manner they please. Generally what they do is obtain a deficiency judgement against you, then sell that judgement for pennies on the dollar to collection agencies who will then spend the next 7-10 years hounding you. If he has hidden his assets well, the most annoying thing will simply be his phone ringing off the hook and a lot of junk mail. Assuming he manages the rest of his debt properly, it will be around two years to get back to average credit and about 5 to get back to stellar.
