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.

But hopefully you are able to find a great house hacking situation if you end up moving, its a great strategy to leave a trail of rentals behind - just as my wife and I are doing now!

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

What would you recommend I do in this situation?

I'm in a similar situation.

(The other scammers are from posts here on Bigger Pockets from people with similar situations as mine) McMann Commercial Lending, Walter Trock & Michael LanzaGenie Investments - David Hughes and Mike ConnerSilversky capital out of Lubbock, TX.Jerry Yang and Guatam ShahSmartZip - Smart ZipAmerican Money Loan ServicesTom Vanderlaan.FLIP AND FAST LOANS LLC.Also read this post.

I remember how stressful this was... it just felt like an endless saga that would never end.  

And keep in mind that the rate on the 2nd lien will likely be 10-12% so depending on the cash flow it might not actually yield that much cash to you at closingMore importantly, it's just more debt so ultimately it sounds like you need an income-producing event to actually improve your situation and avoid some of the consequences that you mentioned

In this situation, can all the partners claim mortgage payment as expense in their individual taxes (or just the partner who owns the mortgage)?

See the stress test above.