How do you mitigate that?

This may be sufficient to mitigate the tax implications of foreign investment for you. 

This is the game of leverage, were we balance risk and mitigate our exposure.

Very expensive to mitigate and carries long term liability. 

I kind of agree with @Steve Rozenberg that this could create additional problems but you can mitigate that by creating a written agreement with the tenant that spells out the payment plan and that this is a one-time waiver.Here's my problem.

I currently have 6 rentals in 3 states, and a number of other complicating/mitigating factors. 

There are a lot of factors and most are going to be out of your control if you already own this property.Now, if you don't own anything yet then there are a number of things you can do to protect yourself and mitigate your risk.   

I have thought about this and expect that having an experienced and reputable operator will help mitigate lawsuits.

Mitigants:  make sure the house doesn't look dreary/dark/creepy - with good exterior lighting. 

With this current market they tend to be willing to take less.Contact the bank's loss mitigation department.However I would not mess around with lease optioning back to the seller.