Can you sell them to cover for damages (lost rent, professional clean up, etc)? 

IT doesn't seem reasonable that the property would have lost value (191-175 = $16K decrease) over the 8 year period 2003 - 2011 so the new 2011 loan is probably a refinance not a purchase. 

Most REO agents won't entertain offers without solid proof of funds since they're client (the bank) has already lost money on the REO property, they aren't about to increase their holding times by getting under contract with anyone who sends an offer.Talk to some REO agents and ask them the best strategy for you to get your offers accepted.

good luck... sounds like you have a pretty high bar to get across.sinkhole is  an insured loss  FYI I have funded well over 150 deals In Orlando last 3 years never lost a one.. but in reading our insurance policies if one got swallowed up then the insurance company owns it.there is no Utopia in rental house investing..

I'm currently lost in Home Depot trying to find parts to "lego" my place back together to battle "Super El Nino."     

G'Day everyone,It's your favorite Aussie here again and The Real Estate Dingo.Not too long ago I posted about a property that I lost $25,000 of my hard earned CASH - Ka Ching Ka Ching $$$Click on the throwback link as a reminder - How I Completely Lost My A$$ On This DealI am writing to you today with my head held HIGH and my tail wagging as I just made a $30,000 profit in this awesome deal.There was not much that went wrong with this one besides the odd unexpected rehab expenses.

Today I got a phone call from my agent asking me to pay for the sign because it was lost or stolen from my property.

She lost the family home due to her husband getting really sick.

I was required to change the property from a triplex to a duplex and lost the potential buyer.

Good reason to have reserves to cover lost rent if the housing market and the job market go at the same time.