How about modification or forbearance?

This is similar to construction methods for condos near the beach, only your area would probably necessitate higher end design/aesthetics.

Or the owner may have cured or signed a loan modification in the time in between the publication of the notice of sale and the actual auction date. 

I rent to agencies that sometimes get Medicaid to pay for modifications but it's a process and it's not something I have done myself. 

Of course, there are instances where someone in foreclosure can catch up or do a loan modification and now he is no longer in foreclosure.

I think it could get down to about $15-25 per unit range with the right modifications. 

I know your Dad is doing the management for free but to evaluate as an investment, the modifications must be made.I don't know how much cash would be thrown off  if you sell. 

The note holder could agree to modifications or extensions if the property did not sell, doesn't have to, 2 years is plenty of time to flip most projects.

From one person to the next, then when all the paperwork was in, they called and said someone accidentally opened a modification file , so the account went to mod, then I had to have them re-open a short sale status file again.. finally, then one person to the next again and again.

I then went to the banks  explaining the situation and they explained they would be willing to due a loan modification and they gave me a rough estimate that the monthly payment would be reduced to 1800.