I try to be very rational and step back and analyze it, allowing the numbers to prove that I'm not just being emotional about it.

Those who become overly emotional are often trying to cover up something.

It was pretty sophisticated with a temporary copycat webpage, etc.

You purchased the unit closer to market value then you realize and you are a bit emotionally attached to it now and can not see the reality of a loss coming down the road at you.

Generally the first step the lender wants is to look at a temporary forbearance and repayment plan for short term problems.Then if the problem isn't temporary then they will look at a trial loan mod.Usually the trial loan mod is for 3 months and if you complete that then they will look at a permanent loan mod which is much harder to qualify for.Only about 10 % get a permanent mod.If you can't get a permanent mod then they want you to list as a short sale usually for 90 days.The short sale really doesn't do anything for the owner who wants to stay.Some list anyway and then reject any offers that come in.Then after that the bank will look at a DIL (deed in lieu) or foreclose on the property as a last resort.The DIL sometimes they will give you cash for signing away the property to them instead of foreclosing.Even if you do a DIL or the lender forecloses some banks are renting back the properties to the former owners.They would rather them live in the banks property for cheap then the property be vacant and get vandalized.The losses can be much more to the bank if vacant.As a last resort you could file BK and force the bank not to foreclose and then add in your back payments owed to your chapter 13 repayment plan.If you stop paying the plan however the lender can motion for an automatic release of stay on the property or if you pay the bk plan but not make the regular mortgage payment.This is not legal advice.Every situation is different by state,loan type,servicer and borrower circumstances.

Dry being the temporary use of c's funds to close the a-b escrow.

Depending on the amount of work it may make sense to purchase a temporary or short term workers compensation policy.

To them, it was just temporary housing...and I was just the owner...nothing more...I even bought them a gift for Christmas (only $20, but still...)

If you're buying right, have sufficient reserves and have a disaster plan (maybe liquidating a property, negotiate a temporary assistance plan with lender, personal income) you should never have to depend on your job income to support your real estate business (except in the event of expansion).

Painting the concrete will likely be a poor temporary fix, much like a bandage on a broken arm, imo.