Fannie instituted that former requirement due to "buy and bail" schemes during the Recession, where people with underwater houses would buy a similar home for way less than their current loan balance, and immediately stop making payments on the underwater home.

Let the lease run it's term then decide if you are keeping her or not as a single tenant.Bottom line is she is going to have a difficult time and you would be better off getting a new tenant.

The last 2 questions to your post are difficult.

Not impossible, but just very difficult and not very frequently available.

I have no one to blame but myself for not participating in financial decision making, carrying credit card balances, being ignorant of our retirement savings and mortgage details, having no personal plan for my own financial future, and never creating a budget.

The existing tenants have mentioned separately (this is an up/down duplex) of smell of mold.This is not difficult to believe if in fact there are these obvious cracks on the home exterior.There is no doubt water/moisture is getting into the home and creating a condition for mold to grow.We had a structural engineer out to do our buyer’s inspection yesterday, report is due out later this evening (11/04/17).Verbal communication while on site, indicated a mutually shared concern over these cracks.The roof appears fine.A wall in the backyard will need replacing as the soil weight has almost pushed this wall over and it is only a matter of time before this thing comes falling over.Boiler may need replaced, windows as there is some clear cold.These are just concerns at this time but inspection report will lay all this out once received later today.I should have been a little smarter in not agreeing to a change in inspection objection deadline when it was presented by seller.My buyer’s agent and I should really have talked this one over, as I realize now that, it left us with only hours after inspection to come up with our inspection objection response and to be honest I will not have time to get bids for any of the extensive repair items which I do not doubt will be confirmed in the report received later today.Seeking any advice that you can give on the following: Would you proceed with purchase of the above detailed home?

It’s not difficult and the appraiser shouldn’t need to be inside very long.

While I realize you meant to rant about Air BnB's business practices, you may wish to evaluate some of your own before you find yourself in a difficult spot in the upcoming tax season.

While the build was not difficult, there is a learning curve that I believe after the fact would have been more economical to pay for a seasoned set crew. 

Did they leave owing a balance for rent, utilities, or other charges?