While walking through the parking lot of the townhouse complex, he slipped on ice, fell and busted his skull open tot he tune of $125k in medical bills.

The only good thing is that affected wallpaper must be removed.It is true that most molds do not cause medical issues, but why risk it on a poorly managed rental? 

The other approach is JV with family, friends, your doctor, or lawyer.  

The point of going to college is not to enhance your knowledge of the world, it is to learn a profession, such as a doctor or lawyer.

They stated they had medical bills of over 10k.

Mindy Jensen suggested medical tourism.Thanks for readingChinda

My in-laws also live close to where I work and one of them is also very sick and we like to have our kids to spend time with them before times runs out (the doctor is not very optimistic)..So we will not occupy our current house and like to rent it out.

That number has increased and so has the number of states supporting medical, recreation, or both.

If you've ended up in the situation you're in because of a lost job, medical bills, etc., then that's one thing, though you should still be doing everything you can to make good on the situation (i.e. selling the lot and using the proceeds to help you get out of your predicament).If you paid more than you could afford, using a loan that you knew would reset to a payment you wouldn't be able to make in order to try to make money from appreciation, then I have no sympathy for your situation.With that said, if you have a non-recourse loan on the house and the vacant land does not have a deed of trust / mortgage against it, the vacant land is probably safe.

The entire earnest money deposit will be returned to an Owner-OccupantPurchaser who fails to close after the sales contract was signed due to:• There has been a death in the immediate family (contract holder,spouse, or children living in the same household).• There has been a recent serious illness in the immediate family thathas resulted in significant medical expenses or substantial loss ofincome, thus adversely affecting the purchaser’s financial ability toclose the sale.• There has been a loss of employment by one of the primarybreadwinners, or substantial loss of income through no fault of thepurchaser.• In the case of an FHA-insured sale HUD (or a direct endorsementlender using HUD guidelines) determines that the purchaser is not anacceptable borrower.• For other good cause, to be determined by MCB.2.