To Bailey:

Answered my own post [[#3) by reading the Detroit News this morning - the Hilton Garden Inn went to foreclosure sale last week.
http://detnews.com/article/20100909/...tel-in-Detroit

Article quotes:
"The Hilton Garden Inn Detroit Downtown was sold in a foreclosure auction for $19 million last week, and the new owner has filed a lawsuit against the former owner -- who is the Cleveland developer behind the $200 million renovation of the Westin Book Cadillac."

"The lawsuit says the Ferchill team has an outstanding balance totaling $24.5 million on its loan, including fees and penalties. Wells Fargo and Capmark want the Ferchill officials to pay off the $5.5 million gap that the $19 million foreclosure sale price a week ago Thursday didn't cover, according to the lawsuit. The new owners also requested that a court-appointed receiver oversee management of the hotel, which is still being run by the Ferchill firms."

Normally, you would not let a property be sold in foreclose IF you thought the property was worth more than the loan balance - especially, if you gave a personal guarantee to the lender.