Also, we bought a condo in 2005, and short sold the condo in May 2012 (strategically, hired an attorney, from start to finish the process was 3 months, barely even missed any payments). 

However, many investors use the 1031 Exchange as a strategic way to solve this problem by selling the lower valued property and then exchanging up in value. 

Through a LOT of strategic communications and negotiations, I eventually got them to accept a price of $790,000. 

Someone who enjoys strategic and careful planing, and knowing how to utilize the numbers.

I much prefer having everything just transfer over.As far as your questions... they are more strategic and visionary type questions, but here are the answers: Yes, I'm wanting the properties out of my name to protect against possible lawsuits.

Is there another strategic way of doing this , which wouldn't cost so much?

@Susie LoweHi Susie, you have probably seen that Lakeland, FL is a popular investment city these days, some of the reasons for this is that Polk County/Lakeland is ideally located centrally to Orlando and Tampa, we have many warehouses strategically located throughout Polk County, to include warehouses for Amazon, IKEA, RoomsToGo, PepsiCo and Publix which make this area strategic for distribution throughout Florida, not to mention Publix is headquartered in Lakeland, and we also have a large presence for Coca Cola bottling and Juices in Auburndale, FL which is about 10-20 min from Lakeland.Lakeland is also home to the yearly SUN 'n FUN held in April, which is Florida's largest annual convention, which spans over 6 days on 2200 acres, and it has been recorded to have had a $64 Million direct and indirect economic impact on the I-4 corridor (From Tampa to Orlando). https://www.flysnf.org/about/I have been investing since 2002, and my investments are mainly in Lakeland, Bartow, Auburndale and Winter Haven, I also like Lake Wales and Haines City, there is good population growth, and high demand for workers in these areas, of course keep in mind we are in a pretty descent economy right now, whatever you look at, make sure the numbers make sense, and if you purchase something, leave enough room for an economic downturn, I see many outside investors purchasing at higher than normal prices, because the prices seem cheap compared to other markets close to Lakeland, but this can become a trap if the market shifts in a negative direction.I would be glad to help you with your search

There is a big difference between someone who can strategize with you, and an order-taker. 

Do you suspect they are lying about the supposed appraisal in order to pursue a "strategic foreclosure" which benefits them more than a short sale?

I know a couple of lenders that could help you figure out the best moves - one is on the commercial side (5 units and up) and the other is on the residential side (1-4 units) - the latter and I have done over 150 deals together, and I know how he works... taking your info, and goals into consideration, and helping you strategize the best move.