The last thing that many high net-worth people are looking for is more *taxable* income.  

I believe your entire gain 25k recapture and 25k cap gain are fully taxable, since you're $100k "short" on replacement verses the sold asset.  

Yes, it might go up more in value, but how much appreciation will it take to cover what you stand to lose if the gain becomes taxable?  

For example, I already know that if I make around $100,000 as a single filer:-The ability to deduct rental losses (for a non-RE professional) phases out as MAGI exceeds $100,000-I enter the the 28% tax bracket as taxable income exceeds $91,900 (after standard deduction and personal exemption)-The ability to contribute to a Roth IRA phases out as MAGI exceeds $118,000I have no concern about the capital gains tax rate increasing to 20%, or the Obamacare tax, because my income is nowhere near the level where it comes into play. 

You can use Margin LOCs or loans against your taxable investment portfolio (individual or joint).

Would that be considered a taxable gift? 

Thereby creating an adjustment to you net taxable income that wouldn't have been there before.Just my opinion on this stuff, although mine is backed up by facts.all cash

While you will have to report the income from the rental as taxable income, you may also be allowed to deduct expenses for maintaining and fixing the property, as well as take a deduction for depreciation.

Outside of Loan Mods, the options of the owner in foreclosure are:- Bankruptcy (Ch 13 usually puts the owner of the repayment plan like forebearance; Ch 7 takes the property out of owner's hands and puts it into hands of the BK trustee who will sell it to pay the creditors)- A lawsuit against the lender for wrongful foreclosure or other legal cause - A loan from family and friends to bring the loan current- A loan from their employer - A loan from their  401K plan or IRA (usually up to 50% of the balance is accessible and the money is not taxable)- An emergency withdrawal from their 401K or IRA (they'll have to pay taxes but no penalties)- A sale of the home to a family member who could supply cash to bring the loan current, with an option to repurchase- A hard money cash out loan against an investment property or land, assuming they have one with lots of equity- Sale of the investment property or land to raise cash- Lastly, a sale of their home to a 3rd party whether through a realtor or via a direct sale to an investor like yours truly.As always, tread carefully as this is a high liability / litigation prone area.

Well of course that's not the whole story, as a 5% cap rate doesn't factor in how depreciation and mortgage interest deductions allow you to reduce your taxable income.