We could possibly live with her staying there until April but I do not believe that she will even leave then.

I understand the cost concern.

If they’re concerned about price, offer creative terms like seller financing or a higher price with favorable contingencies.

Are you in an area where land is very valuable leaving you with less to depreciate?

As far as rate is concerned, you can usually go about two points over the current rate (less closing costs for a seller financed deal so there is no real expense there) You need to make sure the borrower can cover that.

My only concern would be whether or not, you’d be able to cash flow.

I am not very concerned with cash flow and am looking more towards appreciation and equity. 

They just seem to leave the house in rougher shape.

Leaving out auction and foreclosure costs for a second, when you write that check for $220k the trustee is going to pay BigBadBank the $175k they are owed first, then he's going to pay LittleBadBank the remaining $45k, and you will get a clean title as the process is going to wipe the slate clean.

Beyond immediate safety concerns, the long-term financial implications, including taxes, are a pressing issue for those impacted by the disaster.