Ok. So provide a Search Room Button so characters auto search a room. Based on how high they roll determines the quality of items they find. Provide a loot summary screen with the following options:

1. EQUIP - Puts item in limited inventory slots on a character. You only have a certain number of equip slots. Maybe 5 more than they have currently, depending on the backpack you carry. You fill all slots, no more equipment on you.
2. SEND TO CAMP - Magically sends item to storage at camp for potential later reuse or as a momento.
3. QUICK SELL - Item is magically sold to vendor you've met of your choice.
4. DROP - Item is useless and won't be sold for squat. Chuck it.

I like your idea though about items just vanishing after they are no longer needed. Once you open that chest, make the thing just disappear. You left it in the chest. Something like that. Or, at the very least, send it to camp automatically.