I don't gamble at all, but the feeling is reminiscent to what one may feel after hitting a "jackpot." 

As a title rep, my stance is of course to advise not to gamble your money and take on the risks yourself, BUT depending on your goals for the property, you may be safe in your decision.

That sounds like one of those Vegas stories where someone claims someone stole their money out of the hotel safe when the reality was they gambled it away when drunk and forgot all about it.I don't think all those threats are helpful, though. 

It could appreciate but I consider that gambling.

These are great for weekend visitors from New Orleans and Florida who come here to gamble (12 casinos).  

The only agent I have had offshore for 30 years is 75 & still with it.But in all fairness my 26 yr old daughter just connected with a 'grandma type' agent (her words) in Scottsdale AZ regarding a home purchase there & was very impressed with her.

I have even heard that banks are holding on to their foreclosures now for the market is back on the rise and they are banking on the fact that they will get much more money next year .. quite a gamble if it's true .. you never know what might happen once our new president takes office ..

That said, would it be in our interest to try to amend the lease with option agreement with the tenant to a subject form to prevent foreclosure and the gamble with the short sale?

Walk away there is nothing worth taking the gamble to hold on to.Reality is you should not have bought in the first place and now if you hold you are likely only going to lose more. 

It's a gamble if values increase much from now until then, but since you have until 2026 to sell for the 121 exclusion, I'd take the gamble that values may pop a bit in a year or so...That's my crystal ball perspective and it may be incorrect, but as market sentiment improves in 12-18 months I think you may get some decent additional gain out of the transaction by holding off a bit.