So it's harder to get loans approved and some banks are asking for reduced LTV's, at least from what I've heard.

You must reduce the basis of property by the depreciation allowed or allowable, whichever is greater.

The trend indicates a minimum of 10 to 20 % drop in home prices as sellers reduce home prices due to lack of Buyers. 

Sellers are known to be slower than than market to adjust to new realities of supply and demand.I’m curious to see if the large number of “temp offs” and the expired and withdrawn that are not re-listing right back, in fact, might be temporarily reducing the inventory and helping other current sales to occur. 

The other options offered various payment plans that reduced their rent for now (deferred, not abated).

I have planted some fast growing trees (Green Giant) that will block out the view and reduce a little bit of noise.

The more you can grow your income and reduce your living expenses, the faster you’ll be able to ramp up.

So what we've decided to do to reduce the bleed is to find a short-term tenant to rent to, and then put the house back on the market after things improve (will it be in a month?

If there are issues you can attempt to negotiate but should have a solid and sound argument for reducing the price (and not just a -hey I screwed up).

Unfortunately there will be a cost.I suspect just the retention of a good lawyer would have reduced some of these issues.