The lender will look at a "reconciliation of values".

In some cases a bank or lien holder may suggest that as an avenue of relief, but the home owner has to pursue that option.  

I got to a point that I couldn't do anything about it other than ask for debt relief through NDR.

Do you own a disaster relief company or mold remediation company?

In those cases I tell my clients if ythey are willing to walk away from the deal if they don't get at least some relief, then ask for the repair/credit.

Is it reasonable to assume that there might additional tax relief  through depreciation, and expenses etc on top of it? 

You are rid of the idiots, isnt that enough of a relief??

It's a relief to know there is still a chance even with high interest rates.

In my experience, what's provided is really more of a cash reconciliation/statement of cash flows because we typically don't have full accounting knowledge to give owners full financial statements (Balance Sheet, P&L, Statement of Cash Flows). 

I was very fortunate that neither of them were affected (long sigh of relief).