if you want to, you could just say the application fee is non-refundable regardless of whether or not they are approved or denied - or just put that on the form they sign to give you permission to run their credit/background checks.If you are this worried about upsetting applicants, though, I worry about you.  

Additionally, if you have concerns that he may damage the property if he gets upset, that isn't a good reason to allow them to stay; it's a bigger driver to not renew the lease and get a better tenant in. 

Although I haven't gotten a yes yet, the sellers weren't upset with my offer.

No need to get upset.

I have recently received the Tax Deed to a property which I purchased at the Delaware County PA Upset Sale.

I mean they even market themselves that way....so you really shouldn't be upset about the actual services.

To your point about being concerned that a seller is upset if he/she sees a large assignment fee on the HUD, an option to consider is a SDDC (Same Day Double Close).

We get some many of these investors on here saying "my agent didn't do this and i'm upset, should I fire him?"

If I was a tenant I would be very upset.

I was extremely upset but I was able to find another avenue for financing my properties.