Is it possible for a capital loss to be worse than -100%? Explain or give an example.

Question

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Suppose, for example, you bought a $160,000 condominium as an investment property using $40,000 of your own money and $120,000 borrowed on a mortgage loan. Subsequently, the condo's market value fell to $100,000 because "leaky condo" problems were discovered in the building. At that point, you have lost more than 100% of your initial $40,000 investment because the condo's market value is less than the amount owed on the mortgage loan. You must still repay the balance on the loan after the proceeds of the sale are applied to the loan.

Is It Possible for a Capital Loss to Be Worse