That means if you sell, your net proceeds could be less than taxes owed after depreciation recapture.

I am selling this property and using the proceeds to buy another investment property.

@Brian Kempler If the first agrees to a short sale, they’ll typically only allow the 2nd to get 5-10% of their UPB from the sales proceeds.  

It will allow you and the seller to mutually agree how to proceed but importantly let's you out and get your EM back without being forced to fork over the difference.Include a financing contingency.

 Hello, Recently I bought a property at foreclosure auction in suburbs of Chicago.I'm wondering what are next steps after court approval.

I am interested in using the proceeds to buy land, which I will then get a construction loan to build on.

How you proceed is completely up to you.If it were me, I'd probably raise the rents a bit, but pay for the flooring myself. 

Also optimistic with moratoriums lifting and being able to move forward with foreclosure/evictions but court houses could definitely be backlogged in certain areas for some time.As for REO renovations, supply chain disruptions will have to cause some friction as emerging markets around the world become more vaccinated and can start to rebound from the virus, thus creating more competition for a limited amount of goods.So short term in my opinion: it's a bit more of the same.

They don't haul you off to court, or immediately impose a fine. 

You aren't required to but in the case, they decide they aren't leaving stating a hardship due to the time of year, weather, etc, it would be cheaper and faster to provide assistance to get them out instead of going through a court process.