I've used other cheaper solutions, but they're not nearly as good.

This is simply predatory in nature full stop.I have sold many of my OREO props on low down ZERO percent financing but they were at market prices and the buyers owned them free and clear in 24 to 36 months that works.. but long term contracts on these homes is not a solution for neighborhood revitalization just the opposite.

I think it is the best of the bunch.In the end there are no great solutions in this category.  

If FNMA, FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met:https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htm

I believe that any losses you have in the stock market could offset rental income.On the other hand, the better solution is to not have any net rental income. 

She could have chosen a much cheaper solution, like go to a coffee shop.

Quote from @Michael Patton: I have a solution for that.

I have it currently on Furnished Finders, Turbo tenant, and ale Solutions. 

Thank you for this very clear solution, Derek.  

So, the solution to the problem is built into the system.