They originally wanted to phase out STRs with deed transfer, but the complexity and lawsuit risk of that verbiage had them change to this. 

What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

The real property investment can be repositioned if it proves disappointing in its original form; it can be refinanced or recapitalized if it has too much or too e pensive debt; inflation over time bales out many bad purchases, and finally the investors knowledge, experience and abilities can be leveraged to turn around a cash flow negative property.I’ll provide an exampleThree years ago we purchased a note from a bank secured by two auto repair facilities with a large amount of excess land.  

So you might as well be a head of the game do the cash out refinance buy the next 1-2 properties and simply refinance the original mortgage as a "rate and term" which carries a lower rate.

You can't resolve the issue unless you pay off the loan, the bank sends the property into foreclosure and your original seller sues you for breach of contract and ruining his credit. 

Is there a benefit to foreign national loans for a US citizen with a US credit score (the 791 I mentioned in the original post is my American score)?

Depending on the lender (bank or alt. lender) you have to look at origination fees....points, doc prep, interest rate, frequency draws are allowed/min. draw amount allowed per request, interest payments vs. interest reserve & whether interest reserve is capitalized to fully understand the true cash requirements.

Now the senior lenders start filing foreclose against the original sellers.. the Original sellers start filing complaints with the AG.

Out of curiosity, how did you originally finance the properties if they are negatively cash flowing?

We don't know you, we have no idea how you act under pressure, how much hair a sec8 tenant will have you pulling out or how thick you skin is.