What should I do in this situation?

That all makes sense, but you might not choose that approach in all situations.

This is a nightmare situation and I was wondering if anyone had tips/advice/suggestions on what to do.

I'm sure there will be one person with a perfect scenario including an unreasonably low LTV that will disagree, but I don't believe your asking for what is the lowest they can go in a perfect situation, but rather what is a realistic rate you can expect in the future and 7% is a realistic low end. 

In this article, we will discuss the three most popular repayment methods, how they are different, and in which situations one may be better than another.

I would suggest you could consider the cost to turn the unit (time and money).I have had this situation before and the tenants have always stayed longer because it simply takes longer to have their house restored or the like. 

This is a good question since I do not want to commit mortgage fraud - my plan was to list it for rent around 90-120 day mark and file a work relocation letter with my issuer letting them know my employment situation has changed to a new location.

Most of my landlords & seller-clients are facing a similar situation: does it even make sense to refi or sell the property? 

We have had so many situations with people trying to sell vacant land they don't own, that our MLS put out a warning about it for all agents. 

This has been keeping me up at night every night and I can’t find the right answer for my unique situation.