Will the wife win this battle or will I?

You win some...you lose some.

I have recently paid off all my loans and cards and have an outstanding credit score.  

No credit cards, no car payments just regular monthly expenses.

Only information i was able to obtain was that i needed to bring 20% of the winning bid "Certified Bank Check" and come up with the remaining amount within 30 days.

I borrowed money from relatives.I financed houses 90% to 97% with first mortgages.I borrowed second mortgages.I borrowed on unsecured lines of credit/signature loans.I got a partner to put up the cash, because I had none.I borrowed on credit cards (I do not recommend this).The first 11 properties that I bought were all essentially 100% financed.I talks some more about this in the bigger Pockets Podcast #82 give it a listen.Merry Christmas, I just gave you 10 gifts above.

You are the one that puts deals together in a win-win-win fashion for all parties.

But I met a father son team at investor meeting and they are buying up city houses and rehabbing them beautifully to rent or sell to another investor..Its win win as homes are being rehabbed nicely and there is a decent profit margin because these homes in the city are low cost to begin with.This particular multi family was a Craigslist ad..Thanks for your reply

Bring business cards.

I don't know the rules for FHA loans for multi family, but if you can swing an FHA loan and pay that 3.5% down, that is a win.