This is due to the fact that we were only looking at properties that don't need big upgrades. as I agree to your point of just jumping in, we want to make sure we don't jump in and then get out to realize the loss we took on it. 

The buyers will do just fine, it's just an agent's lamenting the loss of a "easy score". 

I don't care how much a property appreciates, it can never catch up to those "exponential" losses. 

The point is if you get sued, you want to isolate your exposure for loss.

Should we be giving a little more grace to the folks who have handed it in and admitted defeat, simply because they will not compound losses on those deals?

If you find a good manager, you can still make as much money (or more) because they will attract better tenants at higher prices, reduce turnover, maintain the property better, reduce losses from amateurish mistakes, etc.3.

This can trigger unfavorable tax rates when the property is sold, plus there are potential loss limitations, transfer issues, distribution problems, etc.  

There isin't a simple program for everyone to use bcause it depends on several factors1) If you have a loss, will the loss be considered passive or active?

Is that financial loss that detrimental to you, to you cannot weather it? 

As you look to borrow from your TSP, consider the cost of that, both in the borrowing, the repaying, and the potential loss in capital gains.