Just that the market combined with your state of mind tells me clean break.You can sell all as a package and 1031 into a passive investment and collect your 7% - 8% for the next 20 years but its too small for a big group without a  huge hair cut. 

This is the case for the house I bought.And banks are very squeamish about taking a haircut on their mortgages.

First time I agreed to have her work it off via haircuts and it took a long time (years: San Diego rents are high) to pay it off.    

Why seller's agent thought HOA would agree to take a big haircut here is a mystery.

We put in our final and best which would be 160k haircut for the lender but my sense is that they didn’t evaluate the properties well enough to begin with and now they are in a tough spot.

I was just curious if there was some vehicle that banks use to short circuit what I am sure will be a LONG foreclosure and a huge haircut if they can get something NOW...

This would probably require a significant hair cut to make it attractive but would end up with the same scenario as #2 - the ability to complete a full exchange.

I'm now a licensed real estate agent with Exit Realty Metro (MN) and Homestead Realty (WI)) I am by no means rolling in cash (and proudly enjoy Sports Clips haircuts and obsessing about airline miles for my vacations) but real estate has helped me catch up on my retirement savings and provides a nice second source of income, which helps me stress less about taking on as many clients in my day job (or charging those clients a ton of money).My day job: I’m a political consultant that has managed campaigns, led field programs, designed trainings, or consulted on over 50 campaigns in 18 US states and 8 countries.

You don't stop to ask your buddies, you don't go get a haircut and you darn sure don't sleep on it.Here's a story about a deal that I did back in the early 1990's.

Pleasant (Near Charleston, SC) getting my hair cut today.