Selling off part of the land could free up some cash without losing the whole property.

The last thing you want to do is go through formal sale since you’ll lose the Prop 13 tax basis, which is likely a $20k/yr saving.

Appraisal fee seems very excessive if this is not more than 4 doors. 

If he owes a decent amount on the property, wouldnt the conventional route make him lose whatever interest rate he has?

You have to prove you did everything right and then because of “empathy” for the poor snook who “fell into you schemes” you may lose anyway.This is a legally binding transaction that will be treated that way by the law.

You have the most to lose now since you'd be out all of your investment if the FC goes ahead.

You will lose one of the best benefits of the real estate industry, appreciation.

Nobody plans to lose their property.

So you didn't do anything wrong, you just didn't know.As for alternatives, most counties have an appeals process... but you will likely lose if you go that way.  

@Hedman Maximus too many investors worry about DIY pennies, while losing dollars - which it seems you may be doing.Why can't you hire a PMC to handle the properties for you?