I was just sitting here thinking the other night and I got stumped. As a Lender, the cost of foreclosing on a property is so costly why dont the Lenders contract the homes with Property Management companies. The Lender would be able to hold out the market until the market value caught up with the loan amount. This would also allow the Lender to receive the income in the mean time.
Ive seen some Lender take $50K less than what the mortgage balance is. Im not sure if its like this in your market but in the amount of loss from the short fall in the rental income vs what the mortgage amount is, would be alot less than $50K.
With affordable housing such a problem across the nation, this would provide for more housing to everyone.
Just a thought.