Unfortunately, no.
It seems you have a "nonbusiness bad debt", which is treated as a short-term capital loss. The sale of your rental property is reported on Part 3 of Form 4797, which bypasses Schedule D and goes directly to Form 1040.
The result is that you can only deduct $3000 per year for your "nonbusiness bad debt" (unless you have other Schedule D capital gains to offset it).
That means you will report $100,000 of income from the sale of the rental, and have a deduction of $3000 for the bad debt.
