I would apply because FEMA disaster assistance can help with uncovered expenses, and we all know how insurance companies play games!

Strategic marketing efforts also played a key role in presenting the property to potential buyers, leading to a same-day sale at $216,000.

(Example: investing for long-term capital growth for your kids education in 15 years, you have $200K to play with, you want to be an active investor in a market within 3 hours of you).

It’s about playing the long game, building relationships, and becoming a trusted resource in your market.If you stay persistent and patient, you can do the same.

At the end of the day, Maslow's Hierarchy of Needs comes into play.  

I can see doing this for kids or close relatives but strangers.. dont think so.. to me its just another one of those totally grey areas  that maybe legal but ethics come into play.. artificially raising someones credit ?? 

Specifically, more on your partnership and the roles played, the funding (saw in your original post you were exploring options), and how you are managing the properties.

I just don’t know what the long term play is with these.

What role does being named "Additional Insured" play within the context of a Lender?

You might have been able to get the tax sale cancelled in not, but at the same time you might have made out just as well the way it played out.