I'm just a bit shocked and disappointed they could just close down my account and force this chaos on me to find another provider ASAP or face potential tax consequences and loss of my qualified status. 

.- Additionally, you can track income and expenses consistently using software or spreadsheets.If you track everything, you could show a loss and use that to offset other earned income (such as a W2) which will net you a bigger refund.

If I had known the numbers they quoted me were total garbage, I could have sold my houses much earlier and saved about $80K in losses.

Or buy a thermal camera to check for heat losses, they have gotten really cheap. 

In southern Florida I fund and profit / loss is 50/50.

This negative position can consume years of cash flow to recover.

They have been incredibly transparent but they are currently deciding on a capital call or selling the property at a major loss (70-80%).

DIL is a voluntary foreclosure.It is a loss mitigation option you have to apply for and be approved.

There are ways you could do this, but it sounds like you've already resigned yourself to the loss so I won't bother.

The landlord policy will usually address liability and rental income loss for the rented unit, while the HO3 covers your personal belongings and liability for the owner-occupied unit.