The situation you're describing is lose-lose-lose, which makes me skeptical that it describes what's actually happening. The landlord loses out on rent payment

The situation you're describing is lose-lose-lose, which makes me skeptical that it describes what's actually happening. The landlord loses out on rent payments (albeit at a lower monthly rate). The lending institution loses because the default rate increases if landlords stop collecting rent. Renters also lose due to artificially inflated prices. What's stopping the landlord and lender from re-negotiating loan covenants to enable the landlord to collect lower rent payments for a period of time without triggering a new valuation?