Maybe selling is the best option stop the bleeding and do something that is more risk adverse. 

The properties have unique advantages accruable to an investor who is willing to do their homework and take calculated risks.

Other lenders as a new relationship may not care as much because they were not the ones that originally funded your loan and would not yet deem you as a risk.

It reduces the risk for the investor if they stay local.  

Transitioning from Individual Deals to a Scalable ModelScaling up your distressed property portfolio means more than just increasing the number of deals; it’s about creating effective, repeatable systems that minimize risks while maximizing returns.

There is always risk, and these are highly risky and regulated techniques.

I've asked BiggerPockets users for examples of when their investments were protected by umbrella insurance, and I haven't found any examples so far.There are legal risks for landlords, but they are dramatically exaggerated.

I am leaning toward removal because the floor is run down, the risk of increased pests or feral cats, and there is already a storage closet off the patio.

The higher the risk (which usually means higher costs) the higher the reward should be. 

If you can't find people to live in the house, that's the risk you have to take.