Installment Sale repossession then immediate sale at a loss

[jasdlm]

Taxpayer is an LLC (2 partners - not spouses).  House sold on installment was repossessed and 4 days later sold at a loss.  I have calculated the basis following the repossession and then show the sale on 4797.  House had been a rental prior the the installment sale 5 years ago.

Seems to me that there is a short-term, ordinary income loss based on the sale of the repossessed property.  Am I thinking about this correctly?

Thanks much.  I've tried google, also, but I must not be putting the question in correctly.  I have carefully reviewed the IRS Publication about recalculating the basis on the repossession, and I feel okay about that.  It is the short-term ordinary income loss that I am worrying about.