Is it just non-transferable as a function of the law? Or a lack of creative thinking on behalf of the parties?

If it isn't illegal, y'all are missing some gravy.

I imagine this would be something that a prospective buyer would be interested in - given the right conditions, a sweet spot in the middle.

In a higher end building with a low delinquency rate, it wouldn't be compelling. In a shit-hole with a massive problem, it wouldn't be compelling.

Right in the middle (or with specific conditions like upgrading to pace some kind of gentrification) it might behoove the new owners to: * buy the bad debt at some discount (obvious win for the seller here as well, they walk away clean) * easier cash for keys compromises with the ability to dismiss all debt * work with local housing relief to help tenants and use the debt as some kind of good faith and figure out some stupid tax benefit (bleck, but hey, someone will try) * pitch a "New Owners, New Start" whatever marketing bullshit and use some repayment or forgiveness model and have it help guide the other soft(er) dollar cost based crap - like having tenants who don't fight you on every single inspection or entry.

I'm an engineer and totally unqualified to have opinions about any of this (just curious).