Since ALE hires a company to supply furniture, install washer and dryer but ALE is not on the Lease, this particular situation seems to be a loophole for companies such as ALE to not have liability if their hires cause damage not the tenant. 

It sounds like you are in a great situation though currently. 

Buying a home is the bay area retirement planYes, there are a lot details and differences for everyone's particular situation.

I've had to help clients deal with this situation at times.

You might approach your previous lender and explain the situation honestly but tactfully.

How do I navigate this situation and any recommendations for hiring professional for furnishing and for taking photos. 

Maybe setting up for STR and looking into MTR since you have it furnished already, there is plenty you can do with your situation. 

What would you recommend I do in this situation?

Usually when I am in these situations Its me holding the money..

Since Joe is not a registered lender, Joe is not held to the same standards as a lender and the sale could be a wreckless and poor activity by the bank putting Bob in that situation.