Here's what I decided to do: I explained the situation to my new tenant and asked which option was better for her; self-install it for me, or have me send someone to do it. 

Whether to rent the property or flip it is solely based on your long term plan and situation.

This is a delicate situation and I want this to be as smooth as possible, having them vacate the property is a last resort option. 

It's not clear to me how setting up some new platform to get those who are "spinning their wheels" is going to improve their situation. 

@Vernon HuffmanNot a bad situation to be in.

He started selling off properties and investing in more syndications, then eventually started his own syndications.Why invest in individual homes that require your time and energy, or that causes stress?

So I personally take valuations at a downturn part of the cycle with a grain of salt (similar to people who look at the stock market every day during a downturn and get super stressed out and then become tempted to sell at the worst time possible).

This will vary based on the owners specific situation and tax regulations in your area.

If I am understanding the situation, you took at a 12 month loan and it is now due and the lender is foreclosing (I do not understand the six month comment).Here is the reality, getting a lawyer and spending $ to delay a foreclosure is only going to cost you more $ as the lender will also have legal costs that get added to the loan and you will have legal costs.Your options are refinance or file bankruptcy.

You are in a great situation.