I have no personal knowledge of bidding on REO reverse mortgages but if you can substantiate your bid via your own contractor's bids or own appraisal I am sure there is some way to get your lower bid reviewed by a committee delegated authority.

I just went under contract on a house hack that used to be a duplex. the planning committee said I can convert it back no problem.

Small banks often approve loans by committee, so if you can convince them you are worth taking a chance on, someone will give you a loan.

Along with my work in real estate, I am in the incoming chair of the Sacramento Association of Realtor's (SAR) Cultural Diversity and Fair Housing Committee and a member of the SAR Charitable Research Committee.

Some small banks have a committee that must approve, and sometimes that committee meets infrequently, and when they need something additional to help support underwriting ... well, that can take up some time. 

The WPIA is the older one and I know a few of the committee there and they would be a good starting point.

@Tyler Kaye My wife and I's idea was to build a sort of duplex committee on on property and provide things and services kind like an apartment but in a "house" charging a premium.

As a member of the Wisconsin Realtor’s Association, I joined the cultural diversity committee after reading “the Color of Law.” 

Not that this affects the current situation landlords are facing, but I saw it mentioned earlier so I figured I would mention it here.I am on a committee for the Chamber of Commerce for a PAC we run.

Any properties with zero bids during tax auction will go to Forfeited Land Committee until it is sold.