I use $75k of this to pay off the original loan and am left with $37.5k in my hand and a loan of $112.5k.Now the reason this is so confusing to me is something that they never seem to mention in the podcast(s) and other people glaze over; is this new refinanced loan at that much better of an interest rate to make this a no brainer?

I would other then usually I am driving by at 30-50MPH on my way to another job while working (lawn maintenance) So stopping to knock on the door at this point is a no-go. 

If your cash is quite limited, so you need a no down payment loan with no closing costs, this may be worth it for you.If you have some cash and take advantage of the buy-down program, you can get a great interest rate.

Account Closed For a primary residence you can do as little as 20% down on a 3-4 unit with Freddie Mac (one of the two conventional routes) Home Possible is a low down payment program that may be an option with only 5% down if you are purchasing in a no income limit area, or meet the income limits within the area.Here is some info on Home Possible; Advantages of Home Possible LTV of 97% on 1 unit & 95% on 2-4 unitsMinimum credit score of 620 1-2 units, 3-4 if greater than 20% down and 720 if less than 20% down on 3-4 units.PRIMARY Residence purchase onlyNOT Required to be a first time home buyer Locations considered a low income census tract - have no income restrictionsRestrictions of Home Possible 3-4 unit properties require a 720 credit score with less 20% down.

Also even if you at first get a no, keep being yourself and trying to pay it forward.

Having a lender makes this a no go.  

If truly all it needs is a new roof to be complete and ready to sell then a few ideas off the top of my head could be:1)  Borrow the money from friends or family to replace the roof2)  Put the cost of the roof on a no/low interest credit card and pay it off as soon as the house sells3)  Go through a home improvement store (like Home Depot) that offers financing for larger projects like roof replacement4)  Don't replace the roof and just lower your sales price or offer the buyers a credit to fix it themselves after closing

Can we now reinstate a no pets policy and enforce the original lease?

Like Henri said, I'd do as much research as possible and double check all numbers but if nothing changes this is a no-brainer and grats to you.  

Also, it could be a "No" for the lender now, but a "Yes" for in 2 years (or vice versa).