If the debtors could pay 100% of what they owed it wouldn't have been sold. But the OP is suggesting that some of the debtors might be able and willing to pay 5 cents or even 10 cents on the dollar, which I think is a reasonable assumption.

Also, with the assumption that the project isn't for profit (ie, everyone choosing #3) -- someone choosing to pay more (donate) -- would help the project. Even if they only did that after a year or two (when the debt would've been defaulted under "normal" circumstances).