On the other hand, Cleveland is losing population year to year and people are leaving the city.

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.  

This property gives me significant income, so losing it would be an extreme loss.

That's 50k a year gone and you are losing tax write-offs and equity potential.

If neighbor says they own it I would tell them I plan to construct a new one next to it on my property line even if I needed to lose a couple of feet of yard. 

Who wins and who loses?

Just to beat a dead horse, we could see a recession in the future where you and/or your spouse lose your jobs.

Meaning if the borrower stops making their payments the investor can lose all of their investment.

WE are seeing this in the Portland market.Montgomery Park the largest office complex in the state that sold about 7 years ago for 250 mil just got bought ( after no one bid it at foreclosure) for 25 mil by Menashe family. its over 1 million sq ft.. dont think you can lose on something like that. reminds me of the buys in 2010 in some markets were sfr's were selling for 1/4 of replacement costs..

The money you invest needs to be money that you don't need back for at least five years, and to put it bluntly, you can afford to lose it all in the (hopefully unlikely) event that the investment fails.