Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi there,
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 cannot make the payments and the "cheap money" is about to end.
Thanks for your help.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.