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A friend bought several estate properties (condos) for income & appreciation over the last seven or eight years. Now she is in trouble, more than she thinks, I suppose. One of the properties she's trying to unload for $ 385,000, but no nibbles. Thru several rounds of refinancing
she has mortage(s)of 330,000 on this particular one. The questions are these: If the bank forecloses and sells it for, say 300,000, she's still liable for the other 30,000 AND she has a $ 140,000? long term capital gain? (minus whatever expenses/improvements made)
She thinks if she just walks away and or declares bankruptcy there is no capital gain. She has several other income properties mortgaged to a combined total of over $ 2,000,000.


She's likely in a great deal of trouble. Since you describe her as a friend my best advice to you is to practice your "isn't that awful" look and "tsk, tsk" sound effects. If you want to retain her as a friend offer absolutely nothing but commisseration and do not offer sensible observations along the line of "You greedily thought you could play this shell game forever, and now you're paying the price."

Phil
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